Businesses in Bermuda need to look at making themselves leaner via their use of computer systems in preparation for a possible downturn in the economy and to avoid having to lay staff off, according to an IT guru.

Neil Movold, one of the men who was instrumental in brining the Internet to Bermuda, said that when the crunch comes, well-prepared companies will have looked to their computer systems to save money, rather than laying off staff.

And he said that the right technology for businesses could bring millions of dollars in efficiencies.

"Those companies that don't have the systems may not know how to cut back, and may have to let staff go, but that is not the solution," said Mr. Movold, who has just taken up a job with Independent Consulting Solutions.

He said that the Island may not have felt some of the impact from the US, but it would soon feel the effect of the change in the economy.

"Take a look at 360networks - and their troubles rebound on TeleBermuda International," said Mr. Movold.

He said businesses that took into account their strategy, organisation and culture in planning their businesses would be best suited to cope with a down-turn.

"In Bermuda there are many companies that are cash cows. There are ones doing extremely well, but will they be doing well in the future, when there is not so much around when the buildings are built and over and done with.

"Companies will have to be efficient to survive, and they are going to have to start to cut back, like they are in the US."

He said companies could look at changing their processes, they could find savings. For instance changing the way they handled inventory instead of immediately cutting staff numbers.

"They could save a lot of money. One company changed its process, the way it dealt with a manufacturer, and he saved $1.5 million, and did not have to lay people off. I hate to see people laid off. People are a company's biggest asset."

Mr. Movold has just taken up the post of strategic business/technology advisor at Independent Consulting Solutions.

He will be looking at ways to help management of local and international companies come up with IT solutions to their technical problems.

Mr. Movold originally came to Bermuda from Canada to work ten years ago at Business Systems Ltd., which later became Logic. He built, designed and managed Logic's ISP based infrastructure, services and products while director of technology. He also set up Bahamas Online, the Bahamas first ISP connecting the islands to the Internet for the first time, while at Logic.