JSE-listed AST Group has entered into an agreement with Columbus Stainless for the outsourcing of the entire IT department of the stainless steel manufacturer. The contract, which was signed in 2002 and is now fully operational, has a value of R32 million per year for five years.
In terms of the agreement, the IT management and staff of Columbus Stainless were transferred to AST, providing the company with access to the latest IT skills and technology. Further benefits to Columbus are the improvement in cost-efficiencies and the better management of the business value of IT.
"In addition, Columbus Stainless is relieved of the risk of carrying all the required IT skills in-house and it can derive real business value from its IT expenditure while focusing on its core business," says Johan Wagener of AST Mpumalanga.
Columbus Stainless, situated in Middelburg, Mpumalanga, is a modern and efficient stainless steel production facility that meets the changing demands of users in the local market and around the world. The business relies on a wide range of IT solutions, from automation of the production processes through to the processing of business transactions with suppliers and customers.
"Outsourcing of the IT department has allowed Columbus Stainless management to focus on its core business while the IT experts of AST provide the system technology," says Dave Hedges of Columbus Stainless. "Outsourcing has allowed us to improve the control over the demand for IT services in the business, and as a result, we confidently expect to benefit in terms of return on investment in IT expenditure."
"The AST Group has extensive experience and expertise in IT outsourcing, and we believe that this can contribute significantly to the growth and profitability of any size of business. Our aim is always to reduce TOC for our client while improving service levels. Our in-depth knowledge of the manufacturing industry allows us to work closely with our clients, ensuring that we meet the client`s every requirement," says Eric Rautenbach of AST Manufacturing.
With approximately 90 highly skilled IT professionals, AST Mpumalanga now represents the largest IT service provider in this region. The operation is particularly well positioned to provide an effective and complete IT service to similar corporate environments and to establish a much-needed IT presence in this fast growing region of southern Africa.
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