Listed outsourcing company EOH expects to continue to grow aggressively and is pursuing several new avenues of growth, including more acquisitions, which have always been a big driver.
EOH aims to grow through a strategy of driving about half of revenue gains through organic growth, and the rest through acquisitions.
The company has set itself the target of achieving R4 billion revenue in the 2014 financial year. For the year to July 2010, revenue was R1.7 billion.
CEO Asher Bohbot says acquisitions will continue to be a key part of the company's growth. “It's easy to buy businesses when you are doing well.”
EOH receives unsolicited e-mails on a regular basis from companies wanting to be bought out, Bohbot adds. The company is looking at a range of growth opportunities, including expanding north into Africa.
However, opportunities in Africa are only one aspect of potential growth and EOH is not banking on the continent being its biggest growth driver. “What if it doesn't work? We're not going to bet the house on it.”
Other opportunities include business process outsourcing, which continues EOH's outsourcing into processes that are technology-driven, says Bohbot. The company also sees cloud computing as a growth area, he adds.
EOH is increasing its involvement in the public sector, an area in which it has traditionally not played a large part, notes Bohbot. “We need to participate in it [the public sector].”
Information management and business intelligence are also aspects into which the company will expand to grow revenue.
Offshore
EOH will remain focused on SA for the next five years and has no plans to replicate the company in other territories such as Europe, says Bohbot. International expansion will come through offshoring its offerings, and not through setting up brick-and-mortar operations.
In Africa, while the company will need to have teams on the cloud, its offerings will be mostly cloud-based and will not require sending hundreds of people north, he comments.
“Africa is exciting.” Bohbot points to the solid economic climate and need for infrastructure as key drivers on the continent.
There is an opportunity to offer IT as a service in Africa, as the continent is expected to leapfrog to this stage of computing. “IT as a service is the only way for Africa to catch up.”
Bohbot says there is not enough time for the continent to invest in hardware, software and training. EOH has put together a team that is analysing the opportunities, he notes.
The company is testing the practicalities of delivering, selling and marketing products on the continent. Cloud-based computing in Africa is inevitable, but the delivery aspect must be solved, says Bohbot.
“It's happening and we want to play our little part in it.” There are challenges in Africa, including different cultures, and legal frameworks that have to be dealt with, he explains.
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