Tactical Software Systems (Pty) Limited (TSS) and National Data Systems (Pty) Limited (NDS), a wholly-owned subsidiary of the Bytes Technology Group (BTG), announced the launch of TSS Managed Services (TSS MS), a new, independent, black empowered company in the information technology industry.
The formation of TSS MS is the result of a unique model developed and implemented by TSS, an empowerment organisation that has been active in the IT market for the past five years and NDS, the sole distributor of NCR IT products in SA. NDS and BTG are part of the greater R10 billion-a-year Altron group.
The empowerment company, TSS, has an equity holding of 60% in the new venture while NDS owns the balance of 40%. The TSS shareholding is held by black shareholders including Danny Mackay who is now chairman of TSS MS, Nazeem Ebrahim and Jehan Mackay who have been appointed managing director and operational director respectively, thus making TSS MS a truly black owned, managed and controlled company.
The new venture brings to the market a unique blend of products and services supported by extensive industry operating capability and management experience. NDS is a company with a track record of more than 10 years in the self-service consumer interaction industry. TSS also has a fully-fledged accredited SAP practice that has a track record of delivering large-scale SAP implementations as well as document and configuration management solutions.
The empowerment model is based on the merging of TSS`s networking business unit with NDS`s selected client operating divisions, NDS Specialised Services. Both TSS and NDS took months to develop the "ideal" model in order to ensure that the new company conforms to the black partners` understanding of empowerment. This understanding is based on a stringent list of criteria that demands majority black shareholding involvement of a management that is representative of previously disadvantaged individuals (PDI) as well as a 70% PDI staff complement. A further requisite was that all new desktop services business would be moved into the new entity.
Outlining their vision of the winning empowerment model, chairman of TSS MS, Danny Mackay, said: "It is imperative that the outcome of this 'marriage` results in truly adding value to both entities in order to ensure a sustainable 'new` South African company."
TSS wanted to expand its services business in order to grow its current client base and improve its service delivery. NDS on the other hand, wanted to enter into business with a black empowerment vehicle to facilitate the company`s further growth of its field maintenance service and support, project delivery and infrastructure services.
"This coming together not only facilitated the empowerment process but also the much needed consolidation that is required within the ICT industry. By equally contributing to the new venture, both companies have empowered TSS MS to develop world-class delivery competencies in the IT infrastructure managed services field which include desktop support services, hardware maintenance and repair as well as related product offerings," said Mackay.
Managing director of NDS, Jack Horton, said: "The value-adding relationship between NDS and TSS has been designed to ensure that most common business risks encountered by black companies, typically the breadth of business experience and capacity, are minimised through a mentorship programme.
Horton said NDS has, for instance, committed to assign key personnel for a minimum period of 12 months to TSS MS to help build the business, mentor and train staff, introduce best practices and ensure good corporate governance. Key personnel will furthermore be seconded to NDS for in-service training before returning to TSS MS.
According to Mackay, the future growth for TSS MS lies in its ability to exploit the capabilities presented by the new venture as a platform from where value-adding products and services can be extended to customers while increasing revenue potential, profitability and shareholder value. Mackay said: "Through the creation of TSS MS we believe we have, albeit in a small way, contributed and shown the path to finding the elusive, sustainable empowerment solution in the ICT sector."
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