Growth on the back of customers

08.08.2005
Von Theo Boshoff

German company Software AG"s CEO, Karl-Hans Streibich, was in South Africa last week as part of a world tour to meet with existing customers, and to discuss things such as service levels and customer relationship issues. This is in line with the company"s almost two year-old global delivery strategy to become customer-centric, and more directly involved with customers abroad. ""

Streibich says: "We are currently building up our customer relationships with existing clients, and it is going very well." He notes that the company had significant local growth since March last year, despite having "many challenges".

He did not, however, elaborate on said challenges - one of which could, however, be the company"s BEE status and equity adherence. Seeing that Software AG is a multinational with a local footprint, BEE is sure to have an impact on its operations.

Software AG"s local representation has grown to 22 employees, since it made the decision last year to discontinue the distribution and maintenance contract with Dimension Data for its Adabas and Natural product stream. According to local sales director, Devon Dalbock, 20 percent of the local employee base consists of PDIs, and 18 percent are women.

In terms of BEE equity, Streibich says that the company is waiting for the final ICT BEE Charter to be published before it will look into this issue. "We want to be sure what is required, before we implement something that is not right," he adds. He did, however, mention that the company is already increasing its BEE procurement.

The company has not focused on signing up new local customers, but Streibich says that the company is looking to expand in SA and into the rest of Africa soon. He notes that its strategy is to use current customers as a basis for further growth.

Software AG has over 80 local customers, which include banks, such as Standard Bank, as well as various government departments, such as SARS and the department of Home Affairs. Adds Streibich: "We will use the existing customer base and expand from there to new customers. And we are going to try the direct, as well as the channel, route to expand into the rest of the continent."

Streibich explains that the company will continue strongly with its direct model, but will use carefully selected partners chosen for specific products as well, to grow the business on the African continent.

The company notes its North America/Northern Europe geographical segment - which includes SA - saw the most dynamic growth during the first quarter of this year.

It says that this confirms the region"s role as the company"s most important geographical market.