Retail software firm UCS hopes to start receiving international orders as a result of its new software factory from next year.
CEO John Bright also hopes to boost revenue generated from export to half the software division`s licence revenue from its current level of under 10% in the next few years.
So far, the company has invested R60 million in the project, which will be nearing three years of development at the end of this financial year.
The concept, explains Bright, requires having ready-made software components on the shelf that can then be assembled to suit customer`s requirements. This results in leaner and more cost-efficient products.
"We believe the factory will enable us to manufacture to order the appropriate software for the large-scale retail industry." Incremental coding requirements when customising packages are sourced from an Indian vendor with which the firm has a relationship, Bright adds.
The factory, which is CMMI certified to level three, should reach level four in the next year, and level five within the next three years. Based in Centurion, it is staffed by 60 people, a small percentage of the over 2 000 staff the company employs in total, Bright says.
Organic growth
Of the 700 staff in the software division, about 350 are involved in software development, with the balance providing integration, implementation and support services for UCS branded software. As such, software development is a focal point of its organic growth strategy. It also provides a one-stop "man-in-van" IT support solution for smaller companies that also require hardware support.
The remainder of the company is focused on providing services through its solutions division. This division concentrates on software not provided by the firm such as SAP, as well as other IT outsourcing services for large-scale retail enterprises. This division employs over 1 300 staff.
One order for a South African company has been signed and a second is hopefully in the offing. Locally, its clients include brand names in the retail, pharmaceutical, furniture and petrochemical industries.
While this will mean taking on some of the IT outsourcing giants in India, the company will be playing in a niche arena. "Our speciality is speciality retail," says Bright.
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