Business solutions company 3fifteen is reviewing the feasibility of its Cape Town operations and says the restructuring process may result in downsizing or closure.
Following a management buy-out (MBO) in March from Datatec, Logical SA re-launched as 3fifteen, with a new focus and much smaller team, keeping the existing Logical branches in Johannesburg, Durban and Cape Town.
However, CEO James Baber says the lack of corporates to approach in Durban led to the closure of that office in June.
"Durban always had a very small market. We had isolated around five big corporates down there we could approach, but they were owned by Dimension Data and PQ Africa (now Comparex Africa)."
Baber says the difficulties facing the Cape Town operation revolve mainly around the fact that 3fifteen`s clients are mostly using Oracle as a platform.
3fifteen decided to move away from Logical`s dual Microsoft/Oracle focus to concentrate only on Microsoft after the MBO and Baber says migration to Microsoft proved slow in the Cape Town market.
The review of Cape Town operations may, according to Baber, include the downsizing or closure of the offices, which have 12 staff members.
Baber remains upbeat on Johannesburg operations and says although times are tough, the company is expecting the local IT market to pick up in the next six to eight months.
3fifteen has the Professional Provident Society, the Automobile Association, Pick 'n Pay, Sasol and Old Mutual among its bigger clients. Baber says most of these companies have head offices in Johannesburg, allowing 3fifteen to provide adequate service from one operations base.
"Johannesburg is very solid and while we haven`t discounted the possibility of reinvesting into Cape Town, a sound company doesn`t invest resources in something that is unproductive," concludes Baber.
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