One year after moving onto a new campus in Midrand in an attempt to create synergies, specialised software and digitally led business solutions group Adapt IT says it has extracted significant synergies that are enabling it to weather the current market conditions and ever-present disruptions.
Adapt IT believes its medium- and longer-term outlook is optimistic as it continues to build on the strong foundation the group established to create a sizeable, scalable and leading information and communication technology business.
“It has been a challenging 12 months, but it [establishred] a very good foundation going forward,” said Adapt IT strategy and people executive Tony Vicente during the company’s investor day.
The key milestones achieved in the past year range from ambitions of above-market revenue growth, capital reinvestment, extended geographic reach and business integration.
While most of the group’s revenue is generated from South Africa, the outlook is to continue to diversify the business into the rest of Africa and global markets.
Growth is seen within the group’s pan-African presence, with market share gains in Kenya and Botswana, while its global presence is growing through expansions in Australia and New Zealand.
Pan-African growth is a key theme for all the group’s six core divisions, namely education, financial services, communications, hospitality, energy and manufacturing.
In addition to pan-African growth, the group's strategic priorities remain growth in Australasia, effective structure, strengthened strategic sales, an enhanced organisational culture and innovation based on its own intellectual property.
Vicente outlined that opportunities for Adapt IT included the services sector, which was the largest revenue driver, and financial services, which was the biggest sector, with an increased overlap between professional and information technology services organisations.
“Disruption is happening everywhere; it is a good thing,” he said, adding that Adapt IT, however, would need to be more strategic and value adding for clients to maintain a competitive advantage.
In terms of sector focus, Adapt IT was well positioned, he assured, noting that, while the group's share of addressable market was some 17%, or R5-billion, the divisional addressable markets in which the group operated were significant.
Strong Foothold“We have a strong foothold in the sectors,” he said, referring to the addressable market share of 40% to 50% in education, 15% to 20% in manufacturing, 85% to 95% in hospitality, 55% to 65% in financial services, 10% to 20% in energy and 55% to 60% in communications.
Adapt IT, employing over 1 000 technology professionals, provides software solutions and services for more than 10 000 customers in 53 countries across the education, manufacturing, energy, financial services, communications and hospitality sectors.