Telkom and JSE-listed CS Holdings have entered into an alliance aimed at providing their customers with the full spectrum of IT and telecommunications services.
The companies will give one another first right of refusal for any work defined within the scope of the agreement.
"This alliance is of great strategic importance to CS Holdings," says CS Holdings CEO Annette van der Laan. "Not only will it allow us to offer a more comprehensive and progressive service to our existing clients, but the new business potential is significant.
"The fact that Telkom chose CS Holdings above other major IT players in the South African market will certainly enhance our profile and I believe we are now perfectly positioned to compete head-on with the first-tier IT players in the South African market."
She says Telkom had been looking for a strategic partner for some time.
Telkom cites CS Holdings` capabilities as a systems integrator, the cultural fit between the companies and the fact that the two do not offer overlapping services to any significant degree as part of the reason for choosing it as a partner.
Its alliances, consulting and implementation skills with respect to vendors such as SAP, JD Edwards, Microsoft and Cisco were also an important factor.
Rikus Matthyser, Telkom Business Integration Services executive, says Telkom brings into the alliance huge industrial-strength capabilities in wide area network, hosting, voice over Internet protocol, Internet service provision, e-commerce, security and structured cabling.
"Each party will invest in its own core areas and rely on the other for capex and technological advances in non-core areas," he says.
"The joint capabilities effectively make it very difficult for any other two players to emulate the offering represented by this alliance."
Van der Laan says the alliance will add significantly to her company`s service offerings and also enhance business in the public, parastatal and private sectors.
"Our initial strategy will be to develop joint offerings which will ensure optimum operational delivery for both parties and, more important, a single point of contact for the client."
In a separate announcement, CS Holdings says it has appointed Makhuparetja Nyama as an executive director. Johann Kunz has resigned from the board and as MD of CS IT Solutions.
Van der Laan says he has decided to become involved in a family business outside the IT industry.
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