Complying with the ICT charter and implementing black economic empowerment (BEE) in a meaningful, profitable way are two issues set to dominate the ICT industry in 2005.
That`s according to Ivor Rimmer, Group Director of Bateleur Software Solutions, who says the long-awaited ICT charter will play a key role in the strategic direction of ICT organisations over the next few years.
"Although companies have until 2008 to comply, they will have to start putting the correct processes in place as soon as possible," he points out.
And, although BEE is not a new item on the agendas of ICT corporations` board meetings, it is becoming increasingly critical - and more and more complex. There`s no doubt BEE is now an integral part of corporate life, and the complexities involved in understanding and managing cultural clashes within the workforce are considerable. In addition to the challenge of finding a mutually advantageous cultural fit with a BEE partner, the skills deficit at upper management levels is escalating.
"The ongoing challenge is to find and retain good BEE candidates, as companies weigh the balance between lip service and achieving a measurable return on investment," Rimmer says. "Unfortunately, the pool of well-qualified BEE people is severely limited, and these employees are likely to be poached on a regular basis as black executives are tempted to job-hop by increasingly lucrative incentives.
"Organisations need to define a process that enables them to fulfil BEE quotas and criteria while simultaneously benefiting the business - anything else is simply counterproductive in the long run."
One solution lies in preparing the widening pool of middle management black employees to take over executive positions in the future. To achieve success in such an initiative, companies will be compelled to demonstrate their commitment, primarily through effective mentoring programmes.
"By investing in their people, organisations can secure their own future. Ultimately, it`s a case of developing potential while simultaneously meeting the corporate and regulatory requirements. It`s a win-win situation, as people receive opportunities to develop their skills, and the company meets its commitments without risking the bottom line," Rimmer says.
He believes business spending is rising, particularly in the banking sector. According to BMI-TechKnowledge, this industry, which represented an IT opportunity of R6.1 billion in 2003, is expected to reach R9.9 billion by 2008.
"Another interesting factor is that, for big corporates like SA`s leading banks, large-scale, so-called legacy mainframe systems are here to stay. Companies may migrate onto different platforms such as Unix, but they still have a tangible business need for enterprise-wide integrated systems," Rimmer says.
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