| Thu 15 Feb 2001, 0:00 | | Alexander Forbes Relies On Dimension Data's Global |
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DIMENSION DATA HOLDINGS
Wednesday 14 February, 2001
ALEXANDER FORBES RELIES ON DIMENSION DATA'S GLOBAL SERVICES
Leading SA-based financial services company Alexander Forbes has concluded a
Global Services deal with Dimension Data worth at least R500-million (US $ 63
million) over the next five years,
Under the agreement Dimension Data, the Network Services and i-Commerce
solutions provider, assumes end-to-end management, support and development of
Alexander Forbes's IT infrastructure and applications. In effect Dimension
Data will become Alexander Forbes' operational IT department, leaving Alexander
Forbes with a small core of staff focused on strategic direction and systems.
The contract, based on Dimension Data's Global Services offering, TeamSource,
is believed to be one of the largest services arrangements in South Africa.
TeamSource embodies concepts and process to ensure that the reasons most large
service contracts of this nature tend to fail have been addressed and uses GSOA
(Global Service Operating Architecture) tools and process to achieve economies
of scale in outsourcing previously only achievable after many years of contract
operation.
The Gartner Group, an independent and globally respected IT consulting firm,
was asked to review the contract by Alexander Forbes and Dimension Data.
Andrew Turnbull, heading up TeamSource for Dimension Data in South Africa said
"TeamSource was developed to address areas in service agreements that often
lead to failure. These include contract governance, innovation management,
total cost of ownership targeting and annual service/price benchmarking. These
areas, amongst others were covered in the Gartner Group review."
"The contract is structured to ensure that both Alexander Forbes and Dimension
Data realise immediate and ongoing benefits from their relationship. This
contrasts with many traditional long-term deals of this nature which tend to
sour in their second or third year as a result of inflexible conditions which
eventually prejudice one or both of the parties involved.
"There is seldom any incentive on the part of the service provider to improve,
or even maintain, service levels in the face of rising costs and squeezed
margins. Under this contract conditions are reviewed annually and benchmarked
against international norms of best-practice to ensure the client - Alexander
Forbes - continues to receive levels of service which meet its changing needs,
while the service provider - Dimension Data - is fairly remunerated," Turnbull
explains.
Alan Mowat, the Group IT Director of Alexander Forbes, says the company's
decision to partner with Dimension Data on its "second most important asset"
(after its intellectual property), was based on a strategic need to improve
service levels while driving down the total cost of ownership of its IT
infrastructure over time.
"Staying abreast of IT developments is absolutely critical to any player in the
Financial Services industry. Alexander Forbes had an excellent, but relatively
small IT division which delivered cradle to grave services to the group.
Through our relationship with Dimension Data we will continue to receive these
services however we will be able to leverage Dimension Data's economies of
scale and technological leadership," Mowat explains.
"In addition, with the world-wide shortage of IT skills, we are assured of
ongoing access to an enormous pool of skills. And our own IT people - the
majority of whom will now be employed by Dimension Data - will benefit from the
greater career opportunities which are open to them as part of a leading global
technology group. However, we retain a small team of IT specialists who will
be responsible for developing the group's IT strategy," said Mowat.
Both parties are eager to look for further opportunities to expand their
relationship both locally and internationally and to explore the possibility of
including Alexander Forbes business units in the UK, Asia and elsewhere, into
the TeamSource framework.
Ends
Contacts:
Issued by:
For: Dimension Data Holdings plc
Contact: Andrew Turnbull (2711 709 1000)
NOTE TO EDITORS
Dimension Data Holdings plc is a leading global network services and i-Commerce
solutions provider, focused on enabling enterprises, telecommunications service
providers and new economy companies to communicate and transact effectively in
an e-enabled environment.
Listed on the London Stock Exchange, Dimension Data is ranked in FTSE 100 and
operates in over 30 countries on six continents. The Group has achieved a two
year compound annual growth rate in US dollars of 57% in revenue and 36% in
basic earnings per share over the past two years. For more information, please
go to www.didata.com.
Alexander Forbes Limited is a leading international independent professional
services organisation, and is ranked as one of the 10 largest firms of its kind
in the world with 5000 employees and offices in 31 countries. Its international
activities include risk management and risk finance consulting and facilities;
employee benefit and actuarial consulting; health care administration and
consulting; insurance, reinsurance and wholesale insurance broking; investment
services; niche underwriting and related products and services.
