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Telkom consolidates position in corporate outsourcing

Johannesburg, 21 Jan 2004

Telkom has won a R100 million contract from Johannesburg Securities Exchange of South Africa-listed fashion retailer The Foschini Group to manage its wide area network (WAN).

The five-year deal - which is effective immediately - consolidates Telkom`s position as a provider of outsourced solutions to enterprises operating in a rapid turnaround, customer-facing environment, thereby allowing the customer to concentrate on its core business while Telkom manages the WAN.

The group has over 1 200 retail stores in SA and bordering states, comprising several brands, including Foschini, Markhams, American Swiss, Sterns, Total Sports, Sportscene, Exact! , @home and Retail Credit Solutions.

Foschini required a partner that could help it meet its business objectives of providing an efficient and scalable network, which would meet current and future business requirements. The current network was running at near capacity, leaving little room for the more advanced applications Foschini required to service its retail locations. This became the primary driver in Foschini soliciting competitive bids to fix this urgent need.

Foschini`s mandate was for the network to provide "more for less". This required the development and implementation of a network which would reduce the time-lag in critical functions like credit applications, approvals and payment, which, if not resolved, meant lost revenue and an eroded customer base.

Telkom implemented an end-to-end VPN Supreme solution, which is its Multiprotocol Label Switching (MPLS) offering. A managed data network service supports the network, with service level guarantees on performance and service availability uptime.

MPLS is a standards-approved technology, which speeds up network traffic flow and makes it easier to manage, also from a quality of service point of view. Telkom, Foschini, and its consultant Nebula Solutions allocated resources to implement and optimise the network.

Brent Curry, General Manager of Foschini Data, said: "Telkom`s outsourced solution had contributed to meeting the group`s demanding IT requirements.

``Telkom`s ability to plan and manage its internal customer base in terms of delivery on network performance and reliability is enabling us to focus on the core business, while Telkom manages changes and enhancements to the network. Telkom also brings skilled expertise to the party, a combination that`s hard to beat in the local market,`` Curry said.

Johann Henning, executive for Telkom`s global customers, said: ``Telkom works closely with customers to assess business needs and future growth requirements before implementing a project.

``Telkom`s MPLS solution works with Internet protocol (IP), asynchronous transport mode (ATM) and frame relay network protocols to enable customers to carry multimedia traffic.``

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