The Johannesburg Stock Exchange (JSE) has decided to move its IT function back in-house, after only two years of outsourcing it to Accenture.
In a recently issued public notice, the JSE said it would re-assume management control of its IT functions as of 1 November.
"We wanted to regain control and have more flexibility," says JSE president Russell Loubser. "We used to have it in-house and a number of years ago we saw that it worked well for the London Stock Exchange to outsource the IT function. At this stage though, we prefer to take back control of IT as we will have more flexibility."
In 2005, the JSE signed a R200 million deal with Accenture to embark on a drive to update its legacy systems to next-generation technology. The project was codenamed "Project Orion".
Loubser says the monetary amount attached to the deal will not be affected by the changing of the terms of agreement with Accenture.
"We will be using exactly the same people with virtually no change. Instead of the responsibility falling with Accenture, it will now fall with us."
Accenture would not comment and referred all media queries to Loubser`s office.
Loubser says Accenture is also happy with the new deal. However, he says the JSE might now have to look at employing a CIO, a post that does not currently exist at the bourse.
"We have very good IT people who stayed behind when our people went to Accenture and we also have very good IT people coming back in from them, but we must consider that we will probably need to employ further resources in terms of a head of IT."
Asked what kind of candidate the JSE would consider for such a post, he said: "They would have to be extremely competent and have lots of experience."
While employment equity requirements are always a consideration, it will not be essential, as experience will be worth more to the JSE, Loubser says.
Past difficulties
The interaction between the JSE and Accenture has not always run smoothly.
At the time of announcing Project Orion, Loubser said "there is no scope to fail" in implementing Project Orion. However, in its 2006 annual report, the JSE reported that the project was running behind schedule.
It stated that R146.8 million out of a total R215.2 million commitment had already been paid to Accenture, and more was to follow. It said delays from the JSE`s side would force it to pay over additional monies, "but a delay caused by the JSE is considered unlikely".
In May 2007, the JSE lost an hour`s worth of trading due to "an unspecified network problem". At the time, Accenture and MTN had completed only a part of Project Orion that was originally set for completion the previous month.
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