This second phase in the growth of Totalamber saw the company capitalise on the requirement for Y2K compliance, however, the subsequent economic climate saw organisations reduce their investment in IT services and this could have had a serious impact on the Totalamber business. Early identification of this issue allowed Totalamber to re-focus operations and, capitalising on knowledge and experience of the HR and Payroll market, Totalamber expanded the services portfolio into other synergistic markets. The services portfolio diversified into the ERP, Business Intelligence and Financials markets. The Totalamber application portfolio was extended to include Cyborg, Northgate, Midland, Rebus, Agresso, Cognos, Hyperion and JD Edwards.

The primary achievement from this phase was the recognition of the need to diversify into other markets and applications, the establishment of credibility in these markets and identification of new opportunities within new client bases.

Totalamber continued to be the number one provider of services to the Cyborg market and became the number one provider of services to the Movex and Rebus markets.