Bytes Technology Networks (BTN), a division of the listed Bytes Technology Group (BTG), has been awarded a contract worth more than R10 million for the IT outsourcing of South African Eagle (SA Eagle), a member of the Zurich Financial Services Group.
SA Eagle, a supplier of short-term insurance products to the insurance brokerage industry in Southern Africa and internationally, awarded the three-year contract to BTN to provide SA Eagle with managed IT outsourcing of centralised operational services.
Since the start of 2000, SA Eagle has embarked upon several initiatives across the organisation to improve operational effectiveness and efficiency. Information technology is a key business enabler to support these initiatives. The IT department was restructured to provide focus on the operational support of the current business as well as continuous development of solutions that will give SA Eagle a strategic advantage.
SA Eagle General Manager, Mark Neille, said: "The restructuring of the IT department was designed to support a new IT strategy that takes a portfolio approach to all IT systems. Thereby the decisions to invest in new systems were prioritised based on future business opportunities and benefits to the organisation. In addition, decisions regarding the maintenance or enhancement of current systems were based on the operational and transactional importance of each system within a fixed budget.
"The company`s IT strategy seeks to focus on the high value areas such as the synthesis of IT knowledge and business opportunities, while outsourcing the non-core IT processes and systems."
SA Eagle IT Production Services Manager, Keith Newnham, added: "The outsourcing of centralised operational IT functions is seen as a way of leveraging BTN`s expertise to help reduce operational costs, improve service delivery and enable IT management to focus on meeting the strategic needs of the business.
"The alignment of SA Eagle`s business strategy by the outsourcing of non-core business components is becoming an increasingly popular trend among large companies. By outsourcing its operational IT requirements to BTN, SA Eagle will benefit from ongoing operational efficiencies and service excellence based on a three-year cost-neutral financial model. This will enable SA Eagle to focus on its core business and customers," says Newnham.
"The SA Eagle IT staff that have moved to BTN as part of the outsource contract will benefit from being part of a leading IT managed services organisation. BTN prides itself on being a learning organisation that encourages and promotes career enhancement and growth opportunities for all," said Newnham.
BTN Gauteng`s Regional Director, Patrick Hastings, said: "BTN prefers a partnership approach to outsourcing, rather than just being a supplier of managed services. Such an approach has a win-win result for both parties and is a strategic fit for Bytes Technology."
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