In an industry characterised by increasingly tight legislation and rocked by one of the biggest corporate scandals the country has yet witnessed, Rhys Edwards, CEO of NMG Consultants and Actuaries, says he will end his 2007 financial year showing good profits and expects 2008 will only improve on that.
Part of his secret, he says, is a stable IT environment.
IT support was close to non-existent when Edwards inherited the top job at the financial services company, which undermined the business's performance. One of his first decisions was to replace the incumbent IT outsource partner with a Bytes competitor. This proved to be totally unsuccessful and so he decided to outsource his IT services requirement to Bytes Outsource Services.
"A year later we're making good profits and we've become one of the most successful administration and employee benefits business in the country due, in large part, to the stability that Bytes has created," says Edwards. "We won the PMR Diamond award in our class of administration and got the highest rating in the industry. Business is booming, due significantly to Bytes."
NMG is an IT-driven organisation. Handling, storing and accessing data is at its core.
It provides actuarial and consulting services, healthcare consulting, retirement fund administration and consulting, personal financial services and short-term insurance broking.
"A large part of our business is about moving funds between the many different parties involved," says Edwards. "We administer that process and it involves billions of rand. When you're dealing with those volumes you need to be quick and accurate or there can be serious financial and administrative ramifications. Bytes Outsource Services has ensured that we have the tools to be on time and accurate."
NMG has in excess of 110 000 lives under direct administration. All of its members with online access can view financial records and modify their personal data.
The group operates its head office in Johannesburg and has branch offices in Cape Town, Durban, Port Elizabeth and Rustenburg.
Geographic distribution
"Our geographic distribution has highlighted a significant benefit gained from appointing Bytes," says Edwards. "I regularly have people from the branch offices e-mailing me to say that the service they're getting from Bytes is first rate."
He adds that the branches have almost all the same requirements of their IT infrastructure as head office. They transfer large quantities of data that require "more than basic copper wire - you have to be on the ball".
"Managing delivery at the branch level is the real test of a services organisation," says Edwards.
NMG has 60 administration employees at its head office in Johannesburg, with additional brokers, actuaries, educators and support personnel at all of its offices bringing its total staff complement to over 200.
Bytes Outsource delivers a range of services to NMG's headquarters and regional offices:
* Programme and operations management;
* Desktop services;
* Help-desk service;
* Network management and remote systems support;
* Procurement and vendor management;
* Server maintenance and support;
* Project management;
* Technology/R&D advice;
* Budget advice; and
* Assistance with resolving NMG partner IT issues.
Compliance and new legislation are having a profound impact on administration and employee benefits businesses, primarily the Financial Advisory and Intermediary Services Act (FISA).
"Compliance puts us under more scrutiny than ever before," says Edwards, "and considering the Fidentia scandal, it's a very positive move to improve accountability."
"New legislation has created an overhead on the business," says Andrew Holden, MD of Bytes Outsourcing Services. "NMG and others in its industry must record, store and manage the advice they offer to clients, how and why they arrived at it and any correspondence that may accrue.
"They're effectively handling, storing and retrieving a far greater volume of data than before," says Holden. "And NMG is servicing some of South Africa's largest and most prestigious organisations."
Clients
They include Pick 'n Pay's employee benefits, Anglo Group, Anglo Gold, Anglo Medical Scheme, Grinaker LTA, Nashua, Nashua Mobile and Panasonic's holdings company, Reunert, African Cables, Ampath, BHP Billiton and others.
"Because of our BEE credentials and partners," says Edwards, "we are appointed brokers to the ANC, NUM, NUMSA, and consequently we run employee benefit programmes for most of the motor manufacturers, mining groups, and we're increasingly moving into the organised labour camp."
NMG also provides employee benefit services to Bytes and its parent, Altron.
"This is not a reciprocal arrangement," says Edwards. "We awarded them the contract to manage our infrastructure long before they gave us any business and they got it based on merit. Both parties manage the separate agreements via independent service level agreements."
NMG appointed Bytes Outsource Services in 2006.
"They've taken care of all of our requirements, but it's the way that they've done it that has made all the difference," says Edwards. "Anybody can keep the network and desktop computers running. But the on-site technicians from Bytes are respectful and helpful and they have a wealth of knowledge that they share appropriately. They're the ones who deserve the accolades for making this such a successful relationship because they're prepared to work long hours and they don't get flustered under pressure. They're the right calibre people for the job. In addition, Bytes's management team is highly experienced, approachable and accessible, they're client-centric and we have yet to turn down an invitation from them to attend a golf session or some other function."
NMG will soon move its headquarters to a larger site in Johannesburg and Bytes Outsource Services will be responsible for managing the IT component of that move.
"Vendor management and infrastructure management during a project like this are absolutely critical," says Edwards. "We have every confidence in Bytes's abilities to ensure a smooth transition from one building to the next."
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