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SA Home Loans co-sources its IT system

Johannesburg, 13 Apr 1999

Newcomer to the Dimension Data Group, TCO Integrators, has won a strategic contract to provide and manage the IT infrastructure for the introduction of a new residential mortgage loan concept to South Africa.

SA Home Loans (SAHL), launched in January to offer South African consumers alternative home financing mechanisms, is a management company providing a pass-through mechanism to link institutional investors with homeowners. It has a countrywide network of consultants, backed up by the Durban-based administration division.

"Data is critical for our business, but our mission is to manage loans and not IT," says Kevin Tod, SAHL IT director. "We have therefore gone into a business partnership with TCO, giving them the mandate to supply and service our IT infrastructure. We develop or buy the business applications we need, and TCO provides the layer on which the applications run."

TCO Integrators, which now operates within the networking division of Dimension Data, is the country`s top Microsoft Certified Solutions Partner. Microsoft SA acknowledges TCO as having more skills relating to the Microsoft platform than any other company in the country.

"We have chosen to go the Microsoft route, and were looking for the best skills," says Tod. "Although TCO is a relatively new company, it has excellent Microsoft experience on board. Also, it seemed appropriate to choose another `new kid on the block`, like ourselves. TCO`s incorporation into Dimension Data, of course, has increased the comfort zone for us."

SAHL uses Microsoft`s messaging offering and Web development tools, SQL Server database and Visual Basic front end. The company involved TCO during the set-up phase of the business. TCO is now handling the implementation, and will support the infrastructure in terms of an ongoing 18 month `total co-operation contract`.

"This involves performing daily tasks for the client, and is a form of co-sourcing, rather than outsourcing," says Steve Welsh, marketing and sales director at TCO. "It works very well, as the client is still in full control of his own environment and IT system, and the work we do is specific and measurable."

TCO has contracted Dimension Data Networking, Durban, to provide and implement the networking components from Cisco as well as the cabling. The implementation will therefore benefit from the combined expertise of these two companies. "We are working closely together with Dimension Data Networking, leveraging their extensive Cisco skills and our Microsoft expertise," says Welsh.

Although new to South Africa, the practice of offering cheaper home loans through mortgage-based securities is already established globally.

"Similar mortgage originators exist in the United Kingdom, Australia and the USA," says Tod. "The home loan market share held by `non-traditional` financiers in the US currently stands at between 40 and 60 percent, with in excess $3 trillion of asset backed securities currently in circulation."

"We are delighted to be in at the start of this new concept for South Africa," says Allan. "We have matched our skills and offerings to SAHL`s business to provide a total solution. This will initially cater for SAHL`s 50-odd people, but is designed to accommodate the company`s projected rapid expansion and growth to 300 by year end."

Although primarily a solutions integrator, TCO also provides hardware where necessary, and SAHL sourced its IBM servers and desktops through TCO as well.

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Editorial contacts

Nicola Knight
Ballard & King Communications
(011) 883-5013
niknight@icon.co.za
Samantha Presbury
TCO Integrators
(011) 709-1000