AST has faith in services market

Johannesburg, 10 Dec 2001

AST Group is confident that its recent successes in the outsourcing and managed services marketplace will generate annuity revenue over extended contractual periods.

The group has won several deals recently from, among others, Absa, the Government Employees Pension Fund, the Justice Department, Murray & Roberts Group business unit Reinforcing Steel Holdings, and Richards Bay Minerals.

"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," the group says.

"Strategic projects focusing on the retention and attraction of key skilled individuals have been initiated at AST to meet the forecast demand."

It adds that the expected upturn in business confidence worldwide, following the turmoil of this year, will mean increased opportunities for IT 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 (return on investment), will be the winners in the years ahead."

It adds that the rand`s slide against major trading currencies will mean organisations will hesitate to make 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 group says its performance in the outsource and managed services markets over the past three years has positioned it 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."