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HP chooses M-IT as their first SA black empowerment warrant service provider

By Mthombo IT Services
Johannesburg, 16 Oct 2000

Mthombo IT Services (MI-T), the recently launched IT provider focused on the corporate and public sectors, has become the first black empowered company to be appointed a Hewlett-Packard South Africa independent service partner (ISP). M-IT`s appointment as an ISP, the second in SA, authorises it to provide first line, nationwide, maintenance and support services for all HP NetServers, desktop PCs and printers, whether or not they are in or out of warranty.

"The appointment of ISPs is in line with our European model where HP, like many other global companies, is focusing on its core business and outsourcing or sub-contracting functions such as service and maintenance to companies able to meet our high support levels," says Patrick Bosch, Vendor Account Manager, Hewlett-Packard SA. "M-IT is such a company. It has the right skills levels; is backed by a substantial investment by a Dimension subsidiary with a 40% stake in the venture; and has a strong market presence in key sectors, such as government and quasi government."

M-IT, which expects 20% of its revenues to be generated by its break and fix support services, 60% by managed, service level agreement and single point of contact services, and 20% by high level value added services, describes itself as a 2nd generation black empowerment company in that it extends empowerment beyond its shareholding to include executive and operational levels. "It`s a policy that`s working well for us," says Lucky Khumalo, who, together with Nkosinathi and Eben Klynsmith, formed M-IT with core competencies to address the R30-billion high-end specialist IT services sector.

"Historically, it`s been difficult for black empowerment groups to meet their goals in the IT sector because of limited skills, resources and management capabilities. However, we`ve managed to achieve above-average ratios of skilled and experienced previously disadvantaged individuals. At the operational level, PDIs represent 68% of the total, while our executive management team comprises 42%," he says. M-IT, he adds, was keen to secure the HP appointment because it sees HP servers and desktops becoming a major force in the corporate and public sectors.

"In the past, HP has been mainly known in SA for its dominance of the printer market. It`s now also emerging as a major force in the high-end enterprise server market - an area we`re specifically targeting our services. "As an ISP, we`re able to provide that one-stop shop service - HP NetServer, HP PC and printer," says Khumalo. The company currently has offices in Johannesburg, and is rolling out branch operations in Cape Town and Durban. It plans to open further offices in Port Elizabeth, Bloemfontein, Pietersburg and Nelspruit early next year.

Says Bosch, "All M-IT`s HP engineers have to be qualified and certified by HP SA. To ensure HP`s renowned service quality standards are not compromised in any way, all these engineers have to attend the local HP training centre - one of only three in the Europe/Africa region." HP SA has been providing M-IT and its staff extensive support in terms of staff training, infrastructure and lead generation to ensure the fledgling company has a sound base on which to build its presence in the market. "This has been just what a company such as ours needed as a new company. I believe we are building an enduring relationship, which is already about to bear fruit in terms of multi-million Rand maintenance contracts," concludes Khumalo.

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Hewlett-Packard

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that`s always on.

HP has 86,000 employees worldwide and had total revenue from continuing operations of $42.4 billion in its 1999 fiscal year.