The Webcom Group (Webcom), an end-to-end ICT products and solutions company with an established stronghold in the financial services and government sectors, has recently embarked on a trail of acquisitions to further grow and cement its position in the South African ICT industry.
The group recently bolstered its stake in Tasima, a black-owned ICT services company, taking the company's stake to 50%. It also acquired a 50% stake in Webcom IT Services and Solutions, a new insurance salvaging company; and Quency, an independent firm that provides advisory and training services on governance, risk management, compliance (GRC) and ethics to both large and small organisations.
These acquisitions will position Webcom to meet the GRC requirements of government and the private sector, GRC being an increasingly important component of business today. Webcom is also now able to meet the IT insurance requirements of organisations, providing assistance with insurance replacements, salvage options and onsite assessments through its investment in Webcom IT Services and Solutions.
Says Glen Miller, CEO of The Webcom Group: "Webcom initially held 33.3% of Tasima and following government's initiative to disinvest in non-core state assets, increased our ownership to 50%. This made great business sense as we foresaw huge opportunities in the Roads and Transport sector through improved technologies. It also allowed us to identify the requirement to develop scanning and verification technology that would specifically benefit the Department of Transport. However, we have seen interest from the corporate sector for these technologies too."
The Webcom Group comprises Webcom Technologies; Webcom Software, the software development arm; and consulting division Webcom Consulting. In addition, Webcom has numerous subsidiaries. It has a 50% stake in RDB Consulting, an ICT outsource and consulting company; ACCSSA (Active Customer Credibility Scan and Security Alerts); and MibSA, the official Motor Industry MIB (Manufacturer, Importer, Builder) portal to eNaTIS - all of which contribute to the ICT needs and requirements of various sectors.
These acquisitions have bolstered Webcom's offering, enabling it to offer a broad spectrum of solutions and services that encompass every aspect of ICT, from outsourcing and consulting to supplying hardware and software, application development and integration, and after-sales support and maintenance. These services and solutions are provided to clients as an outsourced service, allowing organisations to focus on their core business and eliminate the costs of in-house resources and infrastructure.
Adds Miller: "It hasn't always made sense to grow organically in order to expand into new areas and markets. These acquisitions have allowed us to 'fast track' our growth strategy, however, and ensure we can offer niche services and products. By facilitating specialisation through our various divisions and subsidiaries, we've managed to offer our clients a broad range of services at a specialist level."
A stake in RDB Consulting was acquired with the intention of gaining the expert database and operating system skills Webcom required. It made sense to invest in a company with vast experience, a strong resource base and an impressive customer reference list. And Webcom's most recent investment in Quency is strategic in two ways: firstly, it will bring a unique service to Webcom's client base, and secondly, it complements Webcom Software's products that are geared to assist organisations with compliance issues.
Webcom's geographic footprint spans southern Africa and the group has empowered nine Small Micro Medium Enterprise (SMME) partners by contracting them to deliver services and support for both Tasima and Webcom's customers.
Through this initiative, Webcom is providing local support to clients in all provinces and upholds its commitment to 'developing the future' by creating sustainable SMMEs in the ICT industry in South Africa.
Looking into the future, Miller confirms that Webcom will continue to look for opportunities for both organic and inorganic growth. "We are continuously assessing new opportunities as they arise, creating unique solutions, investing in remarkable companies and our people," he says. "We plan to focus increased attention on the various government services that can be automated, as well as continually enhancing our rapid clinics and schools initiatives, for which we already have a proof of concept."
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