Strong focus on skills helps EOH grow revenue from services

4th October 2013

By: Schalk Burger

Creamer Media Senior Deputy Editor

  

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Astrong focus on skills, including develop- ment and retention, is assisting JSE- listed cloud and outsourced services company EOH to achieve its goal of strengthening its diverse information and communication technology (ICT) services, says EOH CEO Asher Bohbot.

The focus on EOH employee skills and support for skills development of its partners have enabled it to grow revenue from services, which is annuity revenue, to above 70% of group revenue. This strong yearly revenue enables it to maintain market agility, as it is less exposed to investment and project fluctuations, and miti- gates any client churn with new services and winning new customers, he explains.

EOH also has significant working capital and access to the scarce skills needed to establish new ICT offerings and services in all market segments, including government, public and private customers, Bohbot says.

“More than 53% of our skilled employees are black. I hope that, one day, defining employment by race in South Africa will become unnecessary in our society as development levels improve. However, we have significant and effective corporate social responsibility initiatives and programmes that ensure education in mathematics and support for mathematics competence in schools, as well as workplace support and devel- opment of black-owned ICT enterprises.”

The group has a community mathematics programme – Maths Centre Programme – that equips teachers with the skills to develop learner competence in mathematics and a Child and Youth Development Programme, under the banner of education organisation Afrika Tikkun, which supports the youth during their school career and helps them find employment through workplace placement.

Further, EOH uses its significant supply chain clout and web of indus- try partners for its enterprise development initiatives aimed at developing black-owned ICT companies through business skills transfer and financial and nonfinancial support.

“EOH has always strived to attract, develop and retain the best people in the industry to create and sustain long, mutually beneficial partnerships and services with our customers and partners.

The company’s success is largely attributable to this people centric business philo- sophy. Doing things right the first time is central to the company’s philosophy and requires a sustained focus on the development of people,” emphasises Bohbot.

Services revenue has increased to R3.6-billion, which is a 55% increase, compared with the previous year. Software sales have increased by 12% to R687-million. Infrastructure sales have increased by 13% to R772-million. The group’s overall margin is 9.7%.

“With a solid financial foundation, revenue of R5.08-billion, 6 000 employees, 2 500 customers and a good brand, the company is one of the largest information technology services com- panies in South Africa,” he emphasises.

EOH continues with its Youth Job Creation Initiative and is running workshops with major customers and vendors to encourage other businesses to follow EOH’s example of employing 620 young people to participate in a year-long learnership and internship programme. Another intake of 620 young trainees is scheduled for this month.

“We hope to mobilise business to take advantage of government incentive programmes and invest more in South Africa and its people to reduce the offshoring of ICT activities to overseas countries at the expense of jobs in South Africa,” says Bohbot.

“We have the people, the financial resources, the agility and the knowledge to grow our business aggressively and expand into new services and territories. Prospects in the rest of Africa are encouraging and we see future growth in the countries we have identified,” concludes Bohbot.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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