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TuringSMI in BEE deal

By Iain Scott, ITWeb group consulting editor
Johannesburg, 28 Jun 2006

TuringSMI, a global provider of BMC Software service management solutions, has sold 26% of its local arm to black-owned enterprise solutions company Cornastone Enterprise Systems.

An additional 23% has been acquired by South African management, putting 49% of the operation in the hands of South Africans.

TuringSMI has also established and headquartered two new global divisions within its South African operations - a managed services division and a solution support division, says Dominic Anschutz, the group`s CEO for Europe, the Middle East and Africa.

"The decision to establish the call centre in SA was based mainly on skill levels," Anschutz says. "We have a presence in India as well, but the global community finds South African call centres more acceptable because of language, skills and the time zone.

"The only negative is the South African telecommunications infrastructure, which is limiting. But everything else in SA is fantastic for running a call centre. The main reason was not cost - India is cheaper, but you get what you pay for."

Cornastone Enterprise Systems executive chairman Lufuno Nevhutalu is to take up a non-executive seat on the TuringSMI Africa board.

"We are bringing a fairly huge client base to the table, over 80 clients," Nevhutalu says. "In addition, Cornastone has a good knowledge of the BMC product and has a lot of experience in that space."

Anschutz says TuringSMI was looking for a partner that could play an active role in the African operations rather than for a passive shareholder.

The deal, which sees the merger of the Johannesburg-based sales offices of the two companies, also gives both entities a larger presence in the rest of Africa.

Anschutz says TuringSMI already does business outside SA and is planning an office in Kenya, with the intention of expanding northwards over time. It is also looking to expand by acquisition.

Nevhutalu adds that Cornastone has solid operations in Mozambique and Namibia.

TuringSMI recorded group revenue of $25 million for the 2005 financial year. Anschutz says the South African business, which is still a new one, is just turning profitable.

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