Business Connexion and First National Bank (FNB) have signed a deal that will see Business Connexion taking over FNB's existing payroll and HR outsourcing division.
This division, which has been in existence for more than 25 years, provides payroll and HR services to about 450 FNB clients. Business Connexion has taken over this business as a going concern from beginning of May 2011.
“For Business Connexion, this is really a landmark deal,” said Herman Venter, managing executive, Q Data Dynamique, a division of Business Connexion that specialises in supplying end-to-end human capital management solutions. “For us, it's an opportunity to strengthen our position as a significant player in the HR and payroll outsourcing space with an expert partner and an established client base. This deal also represents a significant stream of annuity income into our business and this is definitely a positive for us.”
From FNB's point of view, the deal also makes sound business sense. “Providing payroll and HR services is not our core business. This deal effectively brings a specialist IT and services outsourcing company on board to run the business. It leaves us free to focus on our core business of banking, but the service remains as a great value add for our banking clients. And the fact that the business is now in the hands of a company for whom it is the core focus is obviously good news over the long-term for our clients,” said Greg Illgner from FNB.
Initially, services to clients will continue to be delivered from the FNB Data Centre and will gradually, over time, be migrated to Business Connexion's TierIV data centre based in Midrand, billed as the most advanced outsourcing data centre in Africa. “Our greatest concern is to ensure that our clients experience no service fluctuations,” said Venter. “We'll only be doing the migration to our own data centre once we are confident we know the business very well.”
Business Connexion and FNB will also be actively marketing the service to new clients. “By enabling providers to offer a range of services from infrastructure and software to business processes and knowledge through the cloud, this model is revolutionising the way that companies are procuring these services,” says Venter.
Isaac Mophatlane, Chief Executive for Innovation Group at Business Connexion, says: “Business Connexion is now in a position to offer clients a range of services relating to HR and payroll that moves from upfront capital investment to a predictable, monthly expense model. From this deal, an excess of 400 client contracts will be ceded to Business Connexion.
“In addition, the 30 years of experience that we will gain from this deal will add a tremendous amount of expertise to our existing knowledge-base. We will, in collaboration with FNB, also be developing new, value-added services to offer to the bank's customers. And our data centre, which is based on a Tier IV design, will ensure that we provide FNB high availability services with capability to permit any planned activity without disruption.”
For media queries, please contact:
1. Miranda Lusiba - Group Manager: Communication, Marketing & Communications @ BCX; Tel: 0112909112/0832128624; Email: Miranda.Lusiba@bcx.co.za
2. Vernicia Pillay - Marketing & Communications Assistant @ Business Connexion; Tel: 0112909101; Email: Vernicia.Pillay@bcx.co.za
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Business Connexion
Business Connexion is a leading integrator of innovative business solutions based on information and communications technology (ICT). With over 4 500 employees and a track record spanning 32 years, Business Connexion runs mission-critical ICT systems and manages products, services and solutions for JSE listed and key public sector organisations, parastatals and medium-sized companies.
Business Connexion has a unique business model that represents the company's approach to configuring and integrating business solutions, which we develop and implement by drawing on expertise from entrenched competencies across the organisation. In order to deliver a world-class service, Business Connexion has developed strong relationships and attained top-level certification with many of the world's leading ICT suppliers. To find out how we can connect your business to a world of endless possibilities, visit: http://www.bcx.co.za.
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