Peace Software to lose 40 employees

By ADAM GIFFORD

One of New Zealand's largest software development companies, utility billing specialist Peace Software, is to shed up to 40 development and support staff as it shifts work to outside contractors.

Chief executive Brian Peace said its work was becoming more linked to partnerships with IBM and Accenture.

"They want Peace to be more a pure product company and they like to do more of the implementation and support," he said.

"A customer like Excel Energy will funnel US$14 billion [$20.5 billion] of revenue through our system and with 30,000 people working there, they demand an outsourcer like IBM take responsibility."

Peace has 375 staff worldwide, down from 450 18 months ago. It slashed its North American sales team a year ago when it became clear the slump in industry sales there would not end quickly. Most of the latest round of job cuts will come in Auckland.

He said many of the staff might find work with the consulting firms.

"They will need to align themselves to work internationally. Some Peace people have already ended up at IBM and Accenture. The skill set they have is valuable in the market," Peace said.

The company has changed considerably over the past two years as it extended the reach of its Energy billing suite to meet the needs of the giant companies it targeted. Its software now bills more than 12 million customers in seven sites.

Peace Software, which is owned by staff, management and US investment funds, does not reveal its revenue. However, based on previous statements from board members, it is probably between US$90 million to US$100 million.

Peace said it did not grow last year, but the company remained profitable.

It expected revenue to start picking up in the second half of this year.

"There is a growing sense in the US the economy is gaining some momentum, but the utility sector tends to lag going into recession and out again," he said.

The company is bidding on six major deals, with particular interest on sites switching from Customer One, a product developed by Andersen Consulting, which is no longer supported.