How Two Computer Consulting Techies Made Millions In Sales Two techies turn computer consulting into mega cash.

.Company: TeamAlliance Technology Partners Inc.

.Founders: Mordy Levine and Richard Harmon

.Type Of Business: Technology Placement/Software Development

.Location: Purchase, NY

.Year Started: 1994

.Start-Up Cost: $30,000

.Source Of Start-Up Capital: Personal Savings

.Advertising: Word of mouth

.Recent Sales:$12 Million

RICHARD HARMON AND Mordy Levine are ecstatic. It's a bleak and rainy October morning and the gong in the bullpen, where two dozen placement specialists are seated, has already sounded five times. Every time the big brass gong rings, it signals the placement for another technologist in some company somewhere in the United States.

To Harmon, 39, and his partner, Levine, 37, the resounding gong is music to their ears, not to mention money in their pockets. It means they're broadening their bottom line and growing more successful. As for the gong, the partners made a vow when they purchased it to bang it only when placements are made.

Together, Harmon and Levine run Purchase, New York-based TeamAlliance Technology Partners Inc., a brash new company that promises to solve any technology client's problem. And judging by the frequency of gongs on any given day, they're solving plenty.

They're expanding aggressively, with offices across the United States, and last year they chalked up sales of $12 million-remarkable, considering the fledgling company was only launched in 1994. Satisfied customers range from tiny three-person shops to Fortune 500 companies like Pepsi, American Express and The Associated Press.

Harmon describes TeamAlliance as a one-stop technology superstore. "There is so much technology out there, it's easy to see why companies are overwhelmed," he explains. "Some firms know they need a computer and accompanying software, but don't have the foggiest idea what to buy. Others need technical professionals to come in and show them how to manage the systems they do have."

"There are some businesses that need software designed to monitor a critical business function like bookkeeping, payroll or sales," Levine adds.

TeamAlliance covers all the technological bases to handle these tasks and more. According to these two BIZ Experiencess, it's perfectly logical. "The nucleus of our business revolves around technology," says Harmon.

If a company needs an experienced systems analyst for six months, TeamAlliance functions as a temp service firm. If a major corporation needs two full-time programmers, TeamAlliance puts on its alternate headhunter hat. And, if the same company needs a new bookkeeping program to track overseas sales, Harmon and Levine provide the software design talent to get that job done, too.

A Fateful Meeting

The seeds for the business were already planted by the timeHarmon and Levine met in 1988 in a karate class in New York City.Passionate devotees of the ancient discipline, both men hold blackbelts. What's more, they both have strong backgrounds infinance and computer software development. Harmon has a B.S. inbusiness administration from the University of Southern California.Levine has a B.A. in economics from Brandeis University in Bostonand an M.B.A. in finance and accounting from the University ofChicago's Graduate School of Business. Both men had builtcareers as software development consultants-Harmon on theWest Coast, Levine on the East. Harmon worked as an independentsystems consultant, designing financial systems for largeengineering companies, while Levine was a software developmentconsultant to a range of Fortune 500 companies.

But it wasn't until 1993 that their professionalrelationship began, when Harmon formed Intertech Inc., a consortiumof 60 computer consultants based in New York City, and Levinebecame treasurer. "It was a loose association of technologiststhat was set up to place senior technologists in high-levelsoftware development projects," says Levine. "We realizedthere was strength in numbers. Because of our mutual contacts, wecould find high-level software development projects, place theright person and charge a fee for the placement."

While consortium members used it as a springboard to findsoftware development projects and full-time jobs, Harmon and Levinestumbled on to a bigger, ultimately more profitableniche-placing full-time and temporary technologists.

By working closely with clients, Harmon and Levine discoveredcompanies had basic needs other than just finding high-pricedsoftware designers for expensive projects. "Every day, we weregetting calls from human resources people asking if we a had aprogrammer with 5 to 10 years experience or an experienced senioranalyst to work either full-time or on a limited-timeproject," says Levine.

On the flip side, they were overwhelmed with complaints fromtheir colleagues about headhunters and temp service firms."Practically all the technologists complained about beingherded by headhunters," says Levine. "More often thannot, they were sent on interviews for which they were either over-or under-qualified because the headhunter had no idea what the jobentailed. Not only is that a waste of an applicant's time, itcan also be a humiliating experience."

Talk about being in the right place at the right time. Itdidn't take the partners long to experience an BIZ Experiencesialepiphany. "We realized we were in an ideal situation,"Harmon continues. "We had tremendous empathy for thecandidates as well as the company project mangers searching fortalent. We knew plenty of technologists who were constantly lookingfor new work. And, after working on complicated softwaredevelopment projects, we saw placement as an easy business to getinto."

In March, 1994, Harmon and Levine launched TeamAlliance. Eachput up $15,000 out of his personal savings to lease a tiny officein the World Trade Center in New York's bustling financialdistrict. With two desks, one phone and a laptop computer, theyopened for business.

Levine chuckles when he recalls their meager start. "Weswore we knew what we were doing," he says. But after hardlythree weeks in business, they discovered they were underequippedand understaffed. Because they had plenty of contacts and potentialclients-not to mention a blue-chip stable of technologistsready for assignments-they started making placementsimmediately. "But we were just two people handling two phonelines, and we didn't have the manpower or equipment to get thework done," says Harmon. "We were overwhelmed."

By starting at the crack of dawn and working until 10 or 11 p.m.every night, Harmon and Levine survived the deluge of calls,placing 100 people in their first month of business.

"We had no choice but to figure things out quickly,"says Levine. "Every day, we got a little bit better." Theplacements rolled in at a feverish pitch. By the end of their firstyear, sales were just under $2 million.

During that first year, the two men learned to work together andplay off each other's strengths. While they have a great dealin common, their personalities are very different. Harmon ischatty, outgoing and can't seem to spit out his thoughts fastenough. Levine, on the other hand, is laid-back and reserved. Yetboth place the differences between them among the firm'sstrongest assets.

"I tend to focus on the big picture, what's ahead andhow to get there," Harmon explains, "whereas Mordy is theprecise operations and detail person who figures out the best wayto get there.

"During that tough first year in business, we worked sevendays a week and lived and breathed the business 24 hours aday," Levine observes. "Until we could afford to hireothers, we had to totally depend on each other."

By January 1995 they had amassed an impressive database ofapplicants and clients and began opening offices around thecountry.

Tomorrow And Beyond

Today, they boast 30 offices, employing 300 consultants-60to 70 percent of them temporary workers. Levine estimates that 75percent of their revenues come from temporary placements, while therest come from full-time placements and software developmentprojects.

The partners say the reason they're successful is becausethey've kept TeamAlliance focused. "We understandtechnology and don't intend to stray from it," Harmonsays. "We've seen too many companies go down the tubebecause they get sidetracked. We're just sticking with what wedo best." Levine adds, "We're technologists placingtechnologists. People appreciate that we'respecialists."

The future? One thing is certain, asserts Harmon:"We're not going to get sloppy by letting success go toour heads." Both are aware of the fact they're beingwatched. Success breeds imitators who are waiting to pounce ifHarmon and Levine slacken their pace. But that's not about tohappen, say the partners. "We've worked too hard to getthis far. We're not going to let anything stop us," saysLevine.

"What's more," adds Harmon, "we're havingthe time of our lives." Reason enough to play the game for allit's worth.

Bob Weinstein is a frequent contributor to nationalmagazines.

For More Information...

Team Alliance, 100 Manhattanville Rd., Purchase, NY10577, (914) 251-3300.