Faritec Holdings embarks on a decentralised corporate strategy

Faritec Holdings has announced its decision to implement a decentralised corporate strategy. The company will no longer be structured as a single entity but rather as three separate businesses that fall under the Faritec Holdings Group. The three new companies are Faritec Enterprise Solutions, Faritec ICP and Faritec Strategic IT Services.

Simon Tomlinson, Faritec`s CEO says "During the course of the previous financial year, the management focused on the core business and tight control of operating expenses and this resulted in the strong growth in earnings." But after almost two years of internal consolidation, the management at Faritec Holdings felt that it was time to embark on a new strategy.

"Previously, the group was made up of three divisions - outsourcing, infrastructure and inter-company processes (ICP) and although this structure has served the company well in the past, Faritec is now ready for change. Therefore, each of these division will operate as separate entities," says Tomlinson.

The decentralisation strategy has been adopted to stimulate growth and enable autonomy in each business. Tomlinson says, "The company was ready for change and although we expect the tough economic conditions to continue for the rest of the year, the management team agreed that it was more important to take advantage of the internal readiness and prepare the business for an economic upturn than hold off until a more positive environment comes about."

"In addition, this new strategy will enable Faritec Holdings to investigate opportunities to grow the current business portfolio and put us in a good position to take full advantage of a future market upturn. This strategy will facilitate our expected business growth for the new financial year", concludes Tomlinson. Faritec Holdings has reported a successful financial year, ended 30th June 2002, with an increase in Group turnover of 11 percent and a 51 percent growth in profit from operations. In addition, cash on hand has remained stable at R41 million, having increased by R4 million on the previous financial year.