Faritec, the JSE-listed IT services and solutions company, has launched a business integration offering focusing on the provision of services surrounding the application integration and middleware (AIM) software sector.
Business integration is forecasted to deliver revenue of R30 million within the first year for Faritec and it already has a number of clients across the South African telecommunications, financial services and government sectors. The offering projects to have a revenue stream of approximately R100 million by 2008.
Faritec`s business integration services aim to solve three key business challenges: integrating internal applications and data; connecting with customers; and linking suppliers, partners and employees together. The focus areas are application integration, user interface integration through portals, and mobility engagement.
"Business integration is about connecting the right people with the right information at the right time," says Simon Tomlinson, CEO of Faritec. "While this sounds like a simple exercise, it is extremely difficult to carry out effectively and efficiently."
Faritec attributes the rapid uptake of the offering to a shortage of certified South African IT integration personnel, as well as a continued trend towards the outsourcing of specialised IT services. The business integration offering already employs over 40 people and aims to have a staff complement of 80 by the end of this year.
Faritec already has a partnership agreement in place with IBM - the leader in the worldwide AIM industry with 37.2% market share in 2004. At the recent IBM business partner awards, Faritec also won the award for top South African software partner.
Increasing demand for business integration services positions Faritec`s new offering in an attractive market segment. The worldwide market for AIM services, according to research firm Gartner, grew nearly 6% to $6.7 billion last year. Recent CIO surveys by both Morgan Stanley and Merill Lynch also found that business integration was the biggest single problem that CIOs face, and was their top IT spending priority.
"The challenge that a large number of South African enterprises face is how best to integrate all of their business processes and applications," says Ronel Boucher, business integration manager at Faritec. "Businesses need a solution that will organise and manage their information in such a way that it can be easily transferred, shared and utilised among their employees, customers, suppliers and partners."
Tomlinson says that as part of Faritec`s strategy for the new offering, the company would continue to invest in the business, as well as investigate strategic acquisitions to help meet the division`s ambitious revenue targets.
"We expect the South African market for business integration services to demonstrate considerable growth in the near future. Our expertise in this sector combined with our leadership in the IBM infrastructure market in SA makes for an attractive proposition for our customers."
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