Johannesburg, 14 Oct 1998
USKO divisions to roll out IT business solution for sugar giant over 5 years
The JSE listed USKO group has signed an agreement worth more than R100 million with Illovo Sugar to develop networking and desktop solutions for this major sugar group. The project will roll out over 5 years and will include Illovo Sugar operations in Mozambique, Tanzania, Mauritius, Swaziland, Malawi and South africa. The project was won on tender against IBM, ICL, Denel, PQ Africa, Atio and EDS.
This is one of the first major deals signed with USKO through the combined activities of its joint venture software development company, USKOTEC, and USKO Networks (formerly Blue Sky Networks). According to John Beck, Chief Executive Officer of USKO, this deal underscores USKO`s position as one of South Africa`s leading IT groups. "We are delivering the synergies the marketplace needs, and it`s clear that our operating companies are working closely together to deliver industry-beating IT solutions," says Beck.
Technology for rapid business growth
According to Murray Anderson, Group IT Manager for Illovo, through the outsourcing of staff, services and equipment supply, the company will be able to develop, deploy and adjust technology to suit its rapid business growth across Africa. Illovo is one of the world`s foremost sugar producers with considerable assets in South Africa, Malawi, Tanzania, Swaziland, Mauritius and Mozambique.
"We are taking advantage of the economies of scale provided by USKO in the areas of product supply and networking to leverage our Information Technology infrastructure into Africa" says Anderson.
Innovative HR
Key to the negotiations with Illovo was the USKO group`s innovative approach to human resources and staff transitioning. According to Rob Griggs, KZN regional GM of USKO, this approach, already successfully evolved by USKOTEC in their joint venture with Old Mutual in Cape Town, will deliver results through staff being retrained to become more responsive, commercially oriented and innovative. Some twenty Illovo staff will transfer to our group, essentially becoming part of an IT organisation rather than an IT service within a corporate. This will expand their career paths and, together with wealth creation through stock options and other incentives, it will motivate productivity and performance.
"The difference between us and other outsourcing organisations is that instead of just attaining people, we refocus and redevelop individuals, creating an entrepreneurial mindset and extra capacity. This allows us to deliver on both current and future business demands," says Jeremy Aldous-Fountain, sales director of USKOTEC.
Quality networking solutions
According to John Taylor, KZN regional sales manager of USKO, another key factor in winning the project was USKO`s quality approach to networking, service provision and desktop products. In terms of the project, USKO will supply a networking and desktop solution for Illovo that will focus on the group`s LAN infrastructure, servers and operating system. Also key to the project is the training of IT staff, management of third parties, performance management and capacity planning.
"The project will entail the provision, support and management of all UNIX application database servers and operating systems as well as the provision, support and management of desktop hardware, operating systems and `commodity` applications. We will also be replacing 12 Unix systems with Intel and Microsoft solutions, and will offer first level end user support," says Taylor.
Fiscal benefits
The project will bear significant financial benefits for Illovo as millions of rands will be saved in product purchase alone through economy of scale. Productivity levels will increase and be sustained by a service level agreement that will enable Illovo to determine cost versus service provision very tightly. Current industry problems of head-hunting and high staff turnover will be reduced for Illovo. Further, USKO`s strong service orientation that demands delivery on time, budget and customer expectation will enable Illovo to focus on its core competency.
Editors note
About USKO
The JSE-listed USKO Group is the result of what is possibly the most successful repositioning of a company into the Information Technology arena. Formerly a cable manufacturer, the company has focused on people, business partnerships and world class products to achieve its current success as one of South Africa`s top four Information Technology providers. USKO focuses on the highest value component of the information technology products and spectrum, namely software integration and management skills. In line with USKO`s increasing growth and, based on the natural synergies that existed between the various companies within the group, core business units have evolved to give focus to specific areas of business development. They are: Communications, Content, Software and Related Services and Corporate Managed Services. The group is represented in all of South Africa`s major business centres and employs over 1000 people.
About USKOTEC
Launched in February 1998, USKOTEC is the result of a joint venture between Old Mutual and USKO Limited. Old Mutual has a 40 per cent equity stake in the company with USKO holding the remaining 60 per cent of the shares. USKOTEC sits under the umbrella of JSE-listed USKO Limited and was formed to provide a new breed of application development service focusing on rapid, component-based product development and deployment. It is expected to generate a cumulative turnover of more than R300 million within five years. Headquartered in Cape Town, the company employs over 180 people.
About USKO Networks
As a part of the USKO Communications Division, USKO Networks - founded in 1987 as Blue Sky Networks - is a leading player in the South African information technology market with a special focus on the network infrastructure arena. USKO Networks key areas of expertise include:
- Network infrastructure and integration services
- Managed network services
- Next generation intelligent networking
It is USKO Network`s product independence, together with their ability to handle the consequent complexity of multi-product and multi-protocol solutions, both at a technical and strategic level that distinguishes them from other players in the market.
About Illovo
Illovo Sugar is Africa`s leading sugar producer and a significant manufacturer of downstream products with agricultural, manufacturing and other interests extending over six Southern African countries. The group`s core activity is the current production of about 1,8 million tons of raw and refined sugar involving its own cane growing, sugar manufacturing, refining, packaging and distribution operations. Downstream production of syrup, furfural, furfuryl alcohol, diacetyl, ethyl alcohol, lactulose and Dextran contribute significantly to the group`s overall profit. Illovo Sugar Limited has operated in KwaZulu-Natal, South Africa, for more than 100 years and is listed on The Johannesburg Stock Exchange. It is a subsidiary of CG Smith Foods Limited which holds 51% of the issued share capital. The controlling interest in CG Smith Foods is held by CG Smith Limited.
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