JSE Securities Exchange Technology sector company, the AST Group, has further cemented its intentions in the competitive Outsourcing and Managed Services marketplace through significant recent successes with Absa, the Government Employees Pension Fund, the Department of Justice, Reinforcing Steel Holdings - a business unit in the Murray and Roberts Group, and Richards Bay Minerals, to name but a few.
All these successes will generate annuity revenue for the group over extended contractual periods. AST has focused on strengthening its services offerings and the ability of its intellectual resources in these niche markets, as it prepares for the significant challenges forecast for technology initiatives to be undertaken by corporate business in 2002. Strategic projects focusing on the retention and attraction of key skilled individuals have been initiated at AST to meet the forecast demand.
The expected upturn in business confidence worldwide following the turmoil of 2001, will mean increased opportunities for information technology companies which have taken the time to listen to their markets. Those which have positioned themselves to assist in the provision of infrastructure systems, processes and people, as organisations concentrate on their core business to generate better ROI, will be the winners in the years ahead.
In addition, the slide in the rand against major trading currencies will mean organisations will hesitate at making huge investments in hardware or software, rather contracting strategically with outsource partners who provide the inherent services, creative financing and economies of scale through their own infrastructure investments.
The AST Group`s performance in the Outsource and Managed Services markets over the past three years has positioned the company to reap the fruits of some successful partnerships with significant players in the local and international arenas. Apart from the South African clients who have confidently backed the AST Group to produce the goods, The Royal Bank of Scotland in the UK and Alcoa in Australia have also realised the benefits of the AST Group business model.
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In just three years the AST Group has established itself as one of the leading information and communication technology companies on the JSE Securities Exchange. Its consistent creation of value for shareholders, clients and employees has resulted in a steady increase in monthly revenue to the R100 million plus mark. AST is now the fourth largest South African IT company by market capitalisation, and is one of the top three in terms of physical infrastructure (mainframes, servers, desktops, and networks under management) and geographical footprint with over 62 physical locations.
Counting almost 90% of the top 100 JSE-listed companies among its clients, the AST Group services mostly large corporate and government clients, but is increasingly offering services to rapidly evolving small and medium enterprises (SMEs).
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