EOH INVESTOR DAYEOH’s strength rests on the training, development and retention of knowledge workers
The information technology (IT) industry continues to grow, despite difficult macroeconomic conditions worldwide. Expenditure on IT is also growing, as companies seek to leverage their existing IT environments to improve business performance and administration, says business and technology company EOH CEO Asher Bohbot.
“The IT industry is healthy, active and vibrant. EOH foresees major growth opportunities for its IT solutions and systems in the mobile, digital and consumer areas, as well as for its IT systems used in the manufacturing industry.
“We are reasonably busy at EOH. We would like to see more work, but there are no significant challenges that we encounter. Global macroeconomic conditions are a challenge,” says Bohbot.
However, 64% of EOH’s revenue comes from services to industry, which is annuity revenue, placing it on a solid financial footing, says EOH group FD John King.
Convergence is a significant trend in the IT industry and Bohbot notes that EOH’s business divisions collaborate often to pro- vide the complex and customised solutions that customers demand.
EOH has widely diversified business divisions serving the mining, public-sector, manufacturing and logistics, financial services, telecommunications, energy, health, education, construction, utilities and retail industries.
There are significant changes, challenges and opportunities in the marketplace, as it adapts to constrained economic conditions, resulting in industries demanding cost reductions, which are often possible through the application of innovations and new technologies, highlights Bohbot.
“More companies are venturing into the sectors of other companies, increasing competition in established industries. The blurring of previ- ously discrete industries requires new technologies to be developed and better support for companies, which is good for our business.”
Meanwhile, systems integration and aggregation present a significant opportunity for EOH because the company has the required breadth and depth of expertise to provide each customer with a solution that incorporates the diverse vendor and equipment environments in each company.
“EOH is a gold partner of the global IT companies and vendors in South Africa and, if we are not the gold partner, we are a significant partner of the vendor or software developer.”
The company also foresees good prospects for manufacturing and logistics systems and automation locally and in Africa, specifically to provide the materials necessary to develop the infrastructure that the continent needs.
“EOH has the technologies, skills and knowledge services to implement the manufacturing and logistics systems. This is an exciting space for us and there is also the possibility of an acquisition by us in this area,” he enthuses.
Bohbot emphasises that the company’s strength rests on the training, development and retention of knowledge workers.
This emphasis on skilled people includes EOH’s job-creation initiative, which supports primary and secondary education initiatives, such as its mathematics centre and development initiative Afrika Tikkun, its learnership and internship programmes and its industrial partner companies to provide work experience and possible employment opportunities.
“It is our access to skills and partners that enables us to provide and support the complex and diverse solutions that our clients require.”
EOH’s revenue for 2012 was R3.642-billion and headline earnings per share were 253c. Its revenue is derived mainly from its services to industry, at 64%, its software solutions, at 17%, and the IT infrastructure that it provides, at 16%, concludes King.