Black-owned IT services firm DLK Group has established five specialist divisions to service government contracts.
The divisions will offer solutions combining application solution implementation and support, predominately in SAP environments, IT infrastructure services, spatial information solutions, business development engineering and human resource recruitment and training.
Launching the new divisions in Sandton yesterday, DLK CEO Leon Hendricks said: "Sustainable growth for young, black, independently-owned companies depends on their ability to add value to clients` operations through delivering specialised niche solutions.
"Young black firms that merely add margins to solutions packaged elsewhere would be permanently trapped in survival mode, with no chance of growth. They`re merely acting as door-openers because their colour scores points with clients. It`s a business model that cannot survive."
Young black firms that merely add margins to solutions packaged elsewhere would be permanently trapped in survival mode, with no chance of growth.
Leon Hendricks, CEO, DLK
DLK Group is a 100% black-owned ICT business consultancy based in Cape Town, with branches in Gauteng and the Eastern Cape. In its four-year existence, the company has doubled its staff complement to 70 with turnover increasing by 80% annually.
Hendricks said of DLK`s growth: "In all of this, there`s been challenges including lack of skill resources, access to finance and building a credible track record.
"We achieved this without any external funding. Our focus was to identify niche areas in which our specialist skills would add most value to clients and invested in growing our staff skills through training and strategic partnership."
Government feels safer in going for the big names that have become empowered through share deals rather than hard work.
Leon Hendricks, CEO, DLK
Hendricks believes all levels of government need to boost their commitment to black economic empowerment by procuring from young, independently-owned empowerment companies.
"Not enough recognition is given to black-owned businesses that are trying to grow through their own ingenuity, hard work and commitment to excellent service delivery. Government feels safer in going for the big names that have become empowered through share deals rather than hard work."
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