Oracle to cut consultancy costs

Oracle is planning to cut back its consultancy division in favour of developing software that is more user friendly, as it works to slash customer support costs.

While many of its competitors concentrate on the e-services market, Mark Jarvis, chief marketing officer for Oracle, said that the company would buck the trend by focusing on developing software with fewer flaws.

The company hopes to reduce customer demand for support services by creating 'perfect' applications that are easier to implement and operate.

Jarvis said: "The need for consultancy is greatest in the implementation period where the applications are complex. We believe if the software works the need for consultancy diminishes,

"Going back three or four years we would have been competitors with companies like Ernst & Young. We are not doing that now, we prefer to let customers choose their own consultancy."

Despite the fact that consultancy related revenue grew four per cent following a flat year in 2000, Jarvis said the customer support costs could be reduced from $350 to $1 per customer.

The company has already got rid of many of its consultancy staff as it moves to offer customers online support, and will continue to reduce numbers over the year.