ICL South Africa has welcomed Old Mutual`s decision to adopt a dual vendor policy for all its 1999 desktop and server purchases, describing the move as the most effective strategy in optimising prices and quality of services.
The dual vendor strategy, announced by Old Mutual late last year, runs from 1 December 1998 to 30 November 1999. It will see ICL SA and Compaq - through its preferred supplier arrangement with Dimension Data and The Connection Group - vie for Old Mutual`s estimated desktop and server spend of just under R100-million over the 12-month period.
According to ICL SA`s Cape Town client director with specific responsibility for Old Mutual, Malcolm Felgate, the financial services giant`s decision to select two vendors is the most effective way for corporate`s to ensure that they get the best price and minimise the complexity associated with multiple vendors.
"Our build-to-order capabilities have played a key role, over many years, in ensuring that we are able to offer Old Mutual the best possible IT solution. In fact, we regularly work closely with Old Mutual engineers to determine the precise components needed to optimise the computing efficiency we deliver," says Felgate.
Old Mutual`s IS client services manager, Bruce Watters, concurs, stressing that the two vendors were selected to maintain a competitive spirit and present Old Mutual with strategic alternatives.
"Essentially, the dual vendor policy will allow us to capitalise on volume purchasing, improved IT support, and access to the latest technological trends - and in the process, save up to R20-million in the first year alone," explains Watters.
He adds that key selection criteria included compliance with defined technical standards, support, guarantees, price, financial standing, market performance, geographic distribution, delivery lead time, agreed margins, empowerment involvement, and existing installed base.
"Both vendors have been given a forecast of anticipated volumes for the year ahead, with a request to revert with their proposals," says Watters, who adds that he expects a pattern to emerge over the next three months as to what percentage of product will be bought from each vendor.
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