At least 15 providers are vying for a tender that could be worth at least R500 million over the next five years as Neotel seeks partners to take its IT unit to a position that will allow it to support its next growth phase.
Neotel says in its 100-plus-page tender document, a copy of which is in ITWeb's possession, that it is looking for experienced outsourcers with a track record in the telecommunications sector.
ITWeb has reliably learnt that among the contenders for the tender are companies such as Accenture, Altech, Bytes, Dimension Data, EOH, Tata Consultancy Services and Indian company Wipro.
The deal, says a source close to the bidding process, could be worth at least R500 million over the next five years. Neotel is not in favour of open-ended contracts in the value and compensation regime.
Worries
However, Tata's involvement in the process has raised fears of the so-called stalking horse syndrome, a practice under which companies go through a sham process of tendering only to check up on an incumbent.
These fears have been raised because the Indian company's parent holds a controlling stake in Neotel, SA's second national operator, through Tata Communications. Tata Communications, part of the broader Tata conglomerate, owns 68.5% of Neotel.
According to the tender, the scope of work includes strategic IT support, IT service and solutions development of application functionality, as well as operations and infrastructure design.
It also requires IT service delivery and support for the applications environment and IT service delivery and support of the operations and managed service environments.
Moving forward
Neotel's streamlined business model seeks to outsource the IT design, delivery and operations environment. Its "retained organisation" focuses on strategic IT processes and functions. Its IT environment is split into IT operations and support - providing internal support - and managed services - for external customers.
Its current contract with an unnamed partner is nearing the end of term, it says. So far, it has established core IT applications and operating capabilities that "enabled the business during the start-up and business development phase".
However, Neotel is now entering the next phase of its life cycle and needs its IT unit to become a "true" strategic partner, and needs to develop and optimise IT services.
Neotel also wants an optimised IT operating model with an effective implemented governance framework and processes, and to transform its IT delivery capability to become more adaptable, flexible and responsive to changing business needs.
In addition, the operator needs its existing landscape and environment optimised and consolidated, and applications and operations implemented for the next business phase.
Providers will be required to establish a "robust integration platform" that supports the adoption of cloud and owned applications and that becomes the centre capability in the BSS/ESS/OSS. "Robust" business intelligence analytics also needs to be provided.
Neotel wants to trim the cost of its existing operations and application landscape and stretch the investment spend to "deliver the maximum level of new capability over the next five years".
Bids will be evaluated based on scoring that allocates 40% to technical, 50% to commercial and 10% to broad-based black economic empowerment.
The request for proposal was issued last Monday and closes on 27 September.
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