Johannesburg, 28 Jan 1999
Q Data Consulting, professional services division of PQ Africa, today purchased all Sasol`s IT division`s assets and goodwill for an undisclosed amount in a comprehensive outsourcing agreement heralded as a strategic breakthrough for both companies.
The agreement, which will span 10 years, is conservatively valued at R1,2 billion in current Rand terms making it the single largest agreement PQ Africa has ever entered into. This amount also excludes a large number of existing and new projects in which PQ Africa is supplying services and products to the Sasol group.
In terms of the agreement, all Sasol information technology division`s staff, assets and existing contracts are transferred to PQ Africa on 1 February 1999. Almost 250 staff members will be transferred, without loss of benefits, and all existing supplier and contractor agreements will be honoured.
According to Sasol group information division and logistics general manager Alex Zwiegelaar, the agreement with PQ Africa is the result of a strategic decision to improve Sasol`s access to broader local and international IT expertise. "Strategic concerns, such as the diversity of our operations and growth opportunities, rather than only the traditional cost concerns, motivated this outsourcing agreement. It was an essential first step on our strategic path," he said.
The agreement is of particular strategic significance for PQ Africa. Q Data Consulting managing director Etienne Fourie says; "The agreement positions PQ Africa as the predominant IT concern in the petrochemical industry, with Sasol as the second largest industrial company in the country, delivering approximately 41% of South Africa`s fuel requirements. In addition, the strategic value of Sasol`s significant international activities and e-commerce potential are immeasurable. The true value of this agreement lies in its development opportunities."
Zwiegelaar said PQ Africa was selected on the strength of solid existing relationships. Complementing corporate cultures, depth of expertise and financial strength also weighed heavily in PQ Africa`s favour. "Of particular significance to us was PQ Africa`s solid stance on black economic empowerment and affirmative action," added Zwiegelaar.
Fourie says the main focus and success of the agreement will lie in the drive to provide a comprehensive, business-driven IT service that will ensure a more efficient service whilst simultaneously enhancing the competitive capability of the Sasol group. This will be further enhanced through the leveraging and economies of scale that the entire PQ Africa Group can provide to the Sasol group and it`s globalisation initiatives.
Fourie added that PQ Africa`s philosophy of ensuring client satisfaction through independent and unbiased delivery of the appropriate technology and service, makes it easy to continue with, and transfer, other Sasol IT supplier and contractor relationships to PQ Africa. "Within the PQ Africa context most of these relationships will benefit both parties in the long run and strengthen efficient petrochemical initiatives."
@EditorNote = Editors note
Through the services of Q Data Consulting ("QDC") PQ Africa provides the richest set of ICT skills in Africa. Q Data Consulting is the largest component of PQA (www.pqafrica.com) and is essentially an IT solution provider offering systems integration, combining hardware, software, skills and business processes in a total solution, in consultation with its clients.
Offering the full range of ICT consulting, QDC has also developed specific strengths in package implementation, Year 2000 compliancy projects and software development, as well as handling related activities for clients on an outsourced basis.
More specifically, QDC (www.qdc.co.za) offers services across the total vertical IT spectrum, as well as across the full horizontal IT hardware and software range. These include IT planning studies, systems integration services to ensure that the client receives a one-stop total solution, technical IT consulting and system engineering services. In addition QDC concentrates on application development and maintenance services, outsourcing, and conversions between technologies, operating systems and technology environments and languages are offered, as well as millennium conversions.
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