SOUTH AFRICA’S IBM SET TO SIGN DEALS WORTH $385M THIS YEAR

Computing

IBM is set to sign new business deals worth $385 million this year. This is expected to fortify its position in SA and favourably position the group for the next six to seven years, says IBM SA director of global technology services Mteto Nyati. Specifics of the deals will be announced in the coming weeks, but the entire amount will be invested in local business, he says, refusing to be drawn on details at this stage.

In addition to the $385 million in new deals, most of which have already been confirmed, IBM SA has invested R110 million in a new business recovery and continuity centre, says Nyati. The objective of SA's IBM services department is to grow its revenue portion from the current 45% of IBM's local revenue to match the global standard of 60% in the next two years, Nyati explains. The company's hardware and software business brings in the remaining 55% of revenue.

“The future is bright as telecommunications costs come down,” he says, alluding to the fact that the company's technology services division stands to gain from this sector.

SA is the third-largest integrated delivery systems organisation in the world; India is first and Czechoslovakia is second, he says. “Some 236 international clients are served from Johannesburg.

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