Information Technology Editor
STRUGGLING AST is continuing to win work to help shore up its books, clinching a five-year deal to take over the information technology department of steel manufacturer Columbus Stainless.
The outsourcing deal is worth R32m a year, and was signed last year, although the companies are only just announcing it. A total of 89 IT managers and staff of Columbus have been transferred to the AST payroll.
The contract is designed to give Columbus access to the latest skills and technologies without having to maintain those skills in-house. Outsourcing should also improve Columbus's cost efficiencies, lower the cost of its technology services and increase the business value of the technologies it used, said Johan Wagener of AST Mpumalanga.
Columbus relies on systems including production automation and automated business transactions with its suppliers and customers. "Outsourcing of the IT department has allowed Columbus Stainless management to focus on its core business while the IT experts of AST provide the system technology," said Dave Hedges, its business development manager.
When AST reported a R134m loss for the year ending December 2002, it said two pluses were that contracts worth more than R500m had been signed since the books had closed, and that it had retained all its major customers.
Apr 08 2003 07:40:17:000AM Lesley Stones Business Day 1st Edition
Tuesday
08 April 2003
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