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back to article Phoenix IT Group shares plunge on loss of £2m contract

A brief statement from Phoenix IT Group confirming it has lost a £2m contract with a supplier sent the share price into free fall this morning and caused a big dent in the market cap. The loss-making IT services firm - a third party maintainer which also sells direct to customers - provided very little colour around the …

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Silver badge

Sounds like the first casualty

Of Microsoft re-organising their distributors. How many more to go I wonder.

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Anonymous Coward

BC

Maybe Phoenix should separate the Business Continuity division so that they don't screw up the only profit making part they have.

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Anonymous Coward

Bravo

One ham fisted cock up to another - and these are the jokers that took on the IBM desktoppers. Still I guess all us ex-IBM can enjoy another TUPE soon right, please.....pretty please

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FAIL

I know some engineers who were Tupe'd over to Phoenix from KCOM, they're having to raise grievance after grievance due to the problems they're having with contracts being re-written. They've still not had their managers introduce themselves which is pretty bad in anyones books. I wouldn't be surprised if they're even more in the do-do after Christams.

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Anonymous Coward

They are basicly trying to cut costs which is having a huge impact on the service delivered, customers are getting increasingly unhappy with the service provided I know I was one of the poor idiots that had to go in and talk to them.

I was let go along with a bunch of other in April this year, I worked in Hosting (now Managed Service and Hosting in another bid to cut costs!) Moral is absolutely rock bottom and getting worse.

There are a hell of a lot of good people there but there being hamstrung all the time because of lack of resource and out of touch management that don't see that failing to deliver the service is going to cost them business

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Said supplier probably dropped them after they'd had enough of repeatedly not getting paid. I'm amazed any company would do business with them.

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Anonymous Coward

Will the phoenix ever fly again?

probably not while shedding feathers and covered in oil...

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Anonymous Coward

Re: Will the phoenix ever fly again?

Give me a match and hopefully something will rise out of the ashes -- a company that cares for its staff and customers and not the profit margin .

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I worked for them in '99-'00

I am not surprised by this.

I used to drive 200 miles a day to site. When petrol costs got too much I asked if I could be advanced the petrol expenses and was told that they couldn't and "If you can't afford to go to work, we'll just have to replace you with somebody who can"

When I attended their office in Notts on the rare occasions I had to, I was told to be at least 30 minutes (more) early, as it had been noted by management I was still talking to people I hadn't seen for a while at 8am. I didn't even have a desk.

The final straw was after after being outsourced for ~900 a day, and having pretty much single handedly upgrading 300 users from CC mail / NetBEUI to Exchange / TCP and been told I would get a 'decent bonus' I received a cheque for £80.

They were ruthless, inarticulate & and downright mean to their clients and staff - with the obvious exception to a few decent and some very technically savvy staff, just driven too far, fast and in strange directions. They are up there in my working life with a list I don't want to have to deal with - all mobile phone providers, Etisalat, (google them), estate agents, recruitment consultants and QC's.

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Anonymous Coward

LOL

Too many fat cats at the top rinsing off the profits who dont have the first scoobydoo about whats actually happening on the ground!

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Anonymous Coward

the truth is out there

the truth is out there

Sad to say I agree with the above comments - many good people have left due to poor management and lack of support. Basically most of the company infrastructure is broken and with staff moral at an all time low then its only a matter of time before more staff vacate . The constant management change over the years hasn't helped and the "payoff's" for the highly paid managers doesn't help. The company needs to invest in fixing the infrastructure and its staff - cost cutting , more responsibility , less resource's , no pay rise , more work load is having a bad effect on the staff. The management have to listen to staff and action on those issue's -- the management might have a good record at dealing with large corporate companies but they need to understand how a computer company actually works between its staff and customers -- a great dividend to the share holders doesn't always reflect a prosperous company -- just a company with low paid staff that can't provide the level of service or the resource's the customer expects .

Wake up management - stop thinking about feathering your own nest or your next job prospects and start fixing Phoenix.

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This post has been deleted by its author

Anonymous Coward

^ Don't forget they are so blind that one of their primary cost cutting strategies wasn't to cull the bloat of non technical 'client managers' or whatever they choose to call themselves this week, it was to sack cleaners and security guards. They sacked in the region a dozen staff on absolute minimum wage + the other dodging tactics (multiple part time, umbrella agencies etc) potentially putting client systems and data at risk (datacenters without human security anyone?) and they saved probably far less than getting rid of a useless middle-person and her/his car.

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