Absa renews contract with CS Holdings following excellent results, cost savings

Absa has reaffirmed its training agreement with JSE-listed CS Holdings for another year. This will be the second term of a three-year training contract with CS Education Solutions, the training arm of CS Holdings, that was signed in June last year.

This agreement forms an integral part of Absa`s Computer Efficiency drive, a multimillion-rand project aimed at providing IT training to approximately 300 top executives and approximately 36 000 Absa employees countrywide.

According to a learning and development manager at Absa, Christo Greyling, the decision to partner with CS Education Solutions was a good decision and has already shown excellent results.

"We originally anticipated an 18% cost saving by outsourcing our entire IT training function, but after the first year we have already realised at least a 30% cost saving. Furthermore, our agreement made provision for an 8% annual inflation-related increase for courseware but due to the open relationship between Absa and CS Education Solutions, this increase was not realised."

In terms of the outsourcing partnership agreement, CS Education Solutions manages Absa`s IT training in line with the bank`s strategy and business requirements. The success of the training relationship is critical to Absa and is being monitored regularly. In addition to the 300 top executives that have already been trained, from PC literacy to Internet applications, more than 5 000 employees have also been trained in various aspects of IT.

Murray Burger, Absa`s general manager for learning and development, says the relationship with CS Education Solutions has been critical in the acceptance, by Absa staff, of the e-strategy. "Through this training partnership, CS Education Solutions have helped Absa to instil an e-mindset among staff. The utilisation of e-enabled processes and e-tools has increased dramatically since the inception of the partnership. This change towards an e-culture has led to noticeable and measurable improvements in usage and staff performance," explains Burger.

"Since the beginning of this relationship, the role of IT has also changed the way management works. They are totally committed to the transition and this can be seen in the increased usage of e-mail and the Internet," he adds.

The programme focuses on the group`s e-business strategy goal and will add value to other prime business objectives. It will entrench faster communication, better information management and workflow and increase technological proficiency among all its employees. "Our e-business drive will benefit various levels of service delivery, and as a result higher skilled staff will benefit our clients considerably by increased efficiency," explains Greyling.

CS Education Solutions director Dr Madelise Grobler says Absa`s Computer Efficiency drive has positioned Absa as the leader in staff training in the banking sector. "Absa is the first bank to successfully implement a programme of this magnitude and we are glad that CS Education Solutions is part of this success.

"Our infrastructure enables us to grade staff nationally according to their abilities and also recommend individual training courses, thereby eliminating the huge cost associated with unnecessary training," explains Grobler. "It is our philosophy to provide the most suitable training to the right people at the right time and for the appropriate business reasons. We are an integral part of Absa`s total solution, which incorporates an outcomes-based strategic solution to Absa`s training needs."

Not only has the Internet simplified the registration process, but computer-based training (CBT) and technology-based training (TBT) has cut delivery costs considerably. A system has been devised where block bookings are now possible and this has also resulted in huge savings. It is estimated that in the next year 60% of training offered by CS Education Solutions to Absa will be TBT and the remaining 40% instructor-led training.