GovWorks Attacks Rumors of Company's Demise

By William Welsh, Staff Writer


NOV. 20 ? After completing a quiet restructuring that included employee layoffs, officials at GovWorks Inc. are seeking to dispel industry rumors that the company is struggling.


The restructuring was done to further enable the company to focus on its software and transactions businesses, said David Camp, New York-based GovWorks' vice president of marketing.


"[The restructuring] was essentially a streamlining of resources to better serve our goals," said Camp. "[It] is a routine restructuring. There is nothing else to read into it."


GovWorks, which is a private company, chose not to provide an official statement to the media about the restructuring.


When pressed for details, Camp said that although the company had reorganized and terminated some staff, GovWorks' overall structure would remain the same. He would not say how many employees were laid off during the restructuring.


As for the buzz about the company struggling, Camp chided both the press and GovWorks' competitors for engaging in unfounded rumors.


"It has become a popular past time ... among some journalists to sensationalize events to create drama where none exists," he said. "No one is [well] served by the competitor bashing that goes on in this industry."


E-government companies such as GovWorks are not going to disappear, because there is a heavy demand from the government sector for their software and application services, said Camp.


GovWorks, which was founded in 1998, has about 45 government customers, said Camp. The company also has strategic partnerships with American Management Systems Inc. of Fairfax, Va., and Arthur Andersen of Chicago. AMS also took a minority stake in GovWorks as part of the partnership.