The Municipality of Walvis Bay has awarded a multimillion Namibian dollar contract to Multiline AST, a black economic empowerment joint initiative between AST Namibia and Multiline Investments, for the total outsourcing of its IT services and infrastructure. The contract, the first of its kind in Namibia, is for a period of three years.
One of the objectives of Multiline AST is to build capacity and skills transfer while leveraging on AST Namibia`s skills base. Long-term contracts such as this one enables Multiline AST to actualise the objective.
AST Namibia is part of the AST Group, which is the fourth largest IT company on the JSE Securities Exchange. The AST Group of companies provide business solutions, software and information technology services, totally independent from vendors of IT operating systems or hardware. The AST Group has a staff complement of over 3 500 people.
"We will provide and manage the infrastructure for the Municipality of Walvis Bay, which will allow them to focus on driving down costs and improving customer services," says Priscilla Niigambo, General Manager for Multiline AST. "The scope of the project includes the mainframe and WAN infrastructure, as well as support for services such as the desktop infrastructure, LANs and procurement."
Cois du Plooy, MD of AST Namibia, explains how the AST Group prefers the partnering approach to outsourcing, rather than being a mere supplier of services. "This type of relationship lends itself to a multitude of benefits such as risk sharing and investment in the business opportunity. Such an approach has a win-win outcome for both parties."
By outsourcing its IT requirements to Multiline AST, the municipality will benefit from ongoing exposure to best practices and new technologies. This will enable them to focus on its core business and its customers, and to address operational issues that will improve other efficiencies.
A deciding factor in awarding the outsourcing contract to Multiline AST was the latter`s successful business model. This is supported by a focused approach to the Namibian market and the consortium`s ability to utilise the synergy between its business units to not only reduce the total cost of ownership for clients, but also increase service levels by exploiting economies of scale.
"With Multiline AST`s critical mass, economies of scale, depth of expertise and international best practices to improve service levels, we have also been able to reduce the total cost of ownership for our organisation," according to Augustinus Katiti, CEO of the Municipality of Walvis Bay.
"We are looking forward to developing a sound and professional relationship with Multiline AST, with the specific objective of providing a world-class service to our customers."
Katiti is also of the opinion that the municipality can ensure continuity and stability of service "by associating ourselves with a stable and experienced IT partner with adequate and scalable resources".
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In just three years the AST Group has established itself as one of the leading information and communication technology companies on the JSE Securities Exchange. Its consistent creation of value for shareholders, clients and employees has resulted in a steady increase in monthly revenue to the R100 million plus mark.
AST is now the fourth largest South African IT company by market capitalisation, and is one of the top three in terms of physical infrastructure (mainframes, servers, desktops, and networks under management) and geographical footprint with over 62 physical locations. Counting almost 90% of the top 100 JSE-listed companies among its clients, the AST Group services mostly large corporate and government clients, but is increasingly offering services to rapidly evolving small and medium enterprises.
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