| Mon 3 Dec 2001, 0:00 | | Ast Group Limited - Ast Enabling Absa Today, Tomor |
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AST GROUP LIMITED
Share Code : AAA
ISIN Code : ZAE000027397
3 December 2001
AST ENABLING ABSA TODAY, TOMORROW, TOGETHER
In a venture that will further strengthen the relationship between Absa and
the AST Group, the two companies have embarked on a R300 million joint
project which will allow Absa to improve its cost-to-income ratio without
sacrificing service delivery to its customers, and which will place it as a
leading bank in the connected world of eBusiness. The project will be rolled
out over a period of 30 months.
Absa is already the leader in electronic banking business, through its Free
Internet Access (FIA), Self-Service Banking, telephone banking and mobile
banking market position. The proposed solution will improve the co-
ordination, collaboration and consistency between all of the customer
delivery channels which will ensure a more integrated customer service
delivery platform.
The project, called Project e-Preparation, involves the conversion from
DOS/OS2 platforms to a comprehensive NT related platform. This includes
replacing 18 000 workstations and other non-NT compliant equipment, e-
preparing 37 000 network points at 1 050 sites throughout the country,
implementing a new Absa delivery system with e-enabling technology and
network equipment. A prior press announcement referred to Absa's choice of
IBM PC technology for workstation replacement. In addition, AST will be
implementing a network knowledge management system to further enhance the
management of the distributed technology assets.
"The financial services industry is evolving rapidly, presenting
institutions with a vast array of new products and technology options for
servicing customers, while improving processes for efficiency and
effectiveness," explains Louis von Zeuner, Group Executive Director for
Absa. "The joint project will allow Absa to take the new technology and
exploit it, ensuring that the bank will offer a comprehensive service for
customers in a connected society."
Absa understood that IP-enablement of the organisation would ensure that the
key issue of cost reduction would be addressed, and the required business
benefits would be achieved. "Convergence to a common IP network will result
in a reduction in the infrastructure necessary and also offer the
flexibility to add capacity incrementally, when and where required," adds
von Zeuner. "Moreover, in order to increase efficiency and reduce
complexity, Absa Direct, Internet Banking and the branches will share the
capacity of the infrastructure simultaneously."
The integrated services approach will result in flexibility in branch
delivery, allowing Absa to reduce the cost of ownership and positioning the
bank for greater business agility. In addition, the cohesive solution will
allow Absa to react more speedily to customers' needs, to react more
effectively to market changes, to reduce operating costs significantly and
to increase co-operation with key customers.
"The advantage of business agility and customer collaboration cannot be
quantified, but suffice it to say that it represents competitive advantage,"
comments von Zeuner.
"This joint venture is further evidence of AST's excellent relationship with
Absa and the success we have already achieved with AST Distributed
Technology Services (DTS), our joint venture with Absa," notes Pieter
Bouwer, Executive Director of the AST Group.
The project will be implemented and managed by AST DTS. As a result of the
joint venture with Absa for the outsourcing of distributed technology, AST
DTS already has an intimate knowledge of the Absa branch infrastructure and
environment.
Since its establishment in April 2000, AST DTS has had a number of successes
in the market, adding new accounts such as Logical Options, Nissan,
Investec, Capitec Bank and Government Employees Pension Fund. The physical
devices under their management has increased from 75 000 to over 200 000. In
addition, AST DTS has won a lucrative rollout project for the Department of
Justice.
This new Absa contract enables AST DTS to gain further economies of scale
from its extensive national infrastructure and best practices, entrenching
it as the leader in the distributed technology environment in South Africa.
About the AST Group
In just three years the AST Group has established itself as one of the
leading Information and Communication Technology (ICT) companies on the JSE
Securities Exchange. Its consistent creation of value for shareholders,
clients and employees has resulted in a steady increase in monthly revenue
to the R100 million plus mark. AST is now the fourth largest South African
IT company by market capitalisation, and is one of the top 3 in terms of
physical infrastructure (mainframes, servers, desktops, and networks under
management) and geographical footprint with over 62 physical locations.
Counting almost 90% of the top 100 JSE-listed companies among their clients,
the AST Group services mostly large corporate and government clients, but
they are increasingly offering their services to rapidly evolving Small and
Medium Enterprises (SMEs).
ENDS
For more information, please contact:
Carla Pattison, Communications Manager, AST
(T) 012 674 7600 (F) 012 633 9388
E-mail: carla.pattison@ast.co.za
Denise Stanton, Communications Consultant, AST
(T) 012 674 7650 (F) 012 663 9388
E-mail: denise.stanton@ast.co.za
