2010 has been an interesting year so far. Recession can still be felt, although some companies - like my own - seem to thrive during this period. Traditional sectors seem to be caught by the distress much worse, which will cause them to cut back personnel and expenses. Next to that, they seem to increase spending on IT for more flexibility and efficiency.

The IT companies are on a wave right now, but is this good or not? Having to increase the amount of resources will cause investments to be made, while clients knocking at the door will take larger terms to pay the goods. This will bring a lot of IT companies to the ever growing risk of cashflow shortage. Unless you’ve seen the bad times before, chances are young entrepreneurs may not have the reserves and will be caught in a bad spot.

It will be interesting to see how smaller IT companies will cope with this. You can have a healthy company with loads of clients, but when you don’t have cashflow you’re at the mercy of the banks or the tax office. Cashflow shortage is one of the biggest threats of every enterprise. But what will happen to the companies expecting their software? They will suffer yet another loss when the IT company goes broke and will set back their efficiency some months or years. Still, most companies will opt for a slower payment.

Fact is, most clients see their IT companies as a supplies, which in most cases they are. But when their core business processes are automated by that company they will need those experience and skills to survive, whether they will like it or not. When your company is in the last category, better treat your IT company as a partner instead of a supplier. A body can’t move (easily) without its legs and cannot make new things without its arms. IT has become just in the last 10 years.

So what will it be for the second half of 2010? Will it be like riding on a wave, or will it be like Google Wave? I actually think IT companies can choose themselves. There is no shortage of work for the small to midsized ISV’s and when you’re not on the cowmarket (putting peope at the client’s office and expecting money for that, regardless of result) you should be good. It now comes down to the managerial skills of the often young(er) entrepreneurs.

It will be interesting to see who’s going to ride the wave… and who will be under it.