Faritec, a JSE-listed IT services group, has launched a new SAP division. The primary focus of the division will be the customisation, configuration and implementation of SAP`s Business One suite of management solutions for small and medium businesses (SMBs).
Faritec is expecting the new division to deliver revenue of R4 million within the 2006 calendar year and a revenue stream of approximately R20 million by 2009.
The division was launched in order to meet the increasing demand from South African SMBs for ERP solutions. Accounting for over 40% of gross domestic product (GDP) and nearly 40% of employment in South Africa, the formal SMB sector is progressively turning to technology to underpin its growth in highly competitive markets.
BMI-TechKnowledge figures show that overall IT spending in small businesses (one to 99 employees) will grow from R8 billion in 2004 to R12.9 billion in 2009.
"SMEs will become more and more active in technology investments over the next few years as they face increasing competition from both internal and external markets," said Astrid Hamilton, analyst at BMI-T.
The division has already secured a substantial client - The PG Group - signing a five-year managed services and SAP implementation contract in April this year. A staff complement of eight is already in place, with plans to increase this number substantially in the near future.
Extremely successful overseas with more than 4 000 installations, SAP Business One covers the core operations needed to run a business. These include accounting, reporting, sales and distribution, purchasing, and warehouse and partner management. The solution is designed to be an affordable, easy-to-use solution, aimed at companies with 10 to 100 employees.
"SAP Business One is an entry point to the ERP space for South African SMBs," said SAP SMB manager, Patricia Martins. "It also allows partners to develop industry-specific solutions that can be easily customised to meet the operational and process needs of any SMB."
Just like large corporates, SMBs need a single view of their customers and operations. However, integrated ERP systems have generally been out of their reach due to their high cost and complexity. "SAP Business One offers them a simple, cost-effective, powerful solution," continued Martins.
Faritec also announced it has been appointed as a SAP Business One channel partner for South Africa. SAP distributes the solution exclusively through the channel worldwide. Faritec will add tightly-integrated applications to enable, for example, online sales, logistics, data management and advanced warehousing for specific industries.
"Specialised, modular, niche needs are paramount in the SMB market - generalised software solutions are not the best option. Achieving this customisation is the role Faritec can play, basing our solutions on SAP`s core technology," said Simon Tomlinson, CEO of Faritec.
Tomlinson concluded by saying that as part of Faritec`s plans to meet the division`s aggressive revenue targets, it will investigate strategic acquisitions in the local marketplace.
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Faritec is a JSE-listed IT services and solutions group. Faritec combines intellectual capital, resources, technology and business processes to provide tailor-made IT solutions with the objective of assisting customers to manage businesses effectively.
In April 2003 Faritec announced an empowerment transaction with a consortium led by the J&J Group. The consortium acquired 30% equity in Faritec and as part of the transaction, Faritec also acquired the operational assets of Consilience, an IT systems integration company and joint venture between J&J and Tata Africa Holdings (SA) (Pty) Ltd.
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