Financial saving
frees funds
for other needs
SPOORNET’S R1.4billion commitment to a five-year contract which sees the rail utility outsourcing most of its IT operations will bring major benefits to the company and its client base.
“We are doing what we used to do at far less cost and, in real terms, saving a good deal of money,” says Herman Evert, Spoornet general manager strategy and systems, with reference to
the recent agreement signed with Arivia.kom.
The amount, which translates to around R300million annually, is neither new nor excessive, he says. Spoornet has been working with the new provider for some years, in a build-up to the new agreement which eliminates the need for it to maintain computer equipment and take care of accounting systems and other management needs.
“They have taken over about 80% of the work in which we were previously involved,” he says. “There was well in excess of 1 000 personnel in our accounts section a few years ago. Now there are a mere 200. We have worked out that we are in fact paying 2,9% less in absolute terms than we did last year, and are doing what we used to do in real terms, paying about 11% less annually. That is a big financial saving which makes finance available for other needs.
“Now we are able to concentrate entirely on software system building, enabling us to create new better, smarter systems.
“The benefits won’t surface in a month or two. But in the long term, what we are now translating into a better service all round will benefit everyone in the country.
“There are additional benefits in the agreement. Auditing and security are among them, as well as far superior disaster and recovery operations. Arivia gives us far better access to this, and our overall efficiency in strategies and schedule planning will become a factor which will emerge in the near future.”
