BCX restructures for global growthComment on this story
Johannesburg - Business Connexion (BCX), a provider of technology services, has set out to accelerate its positioning by becoming more globally oriented as it restructures its business, overhauls management and sharpens its customer focus.
Chief executive Benjamin Mophatlane said yesterday the restructuring was expected to be completed during the last quarter of the financial year to August. It will result in changes to the executive team and the creation of a new operating structure comprising three divisions.
“What is happening is more than just about the market forces,” he said, adding that further details about the restructuring would be provided when the company reported its financial results next month.
The restructuring will see Vanessa Olver, the deputy chief executive, heading a new strategic office that has been set up to accelerate the execution of key elements of the group strategy.
Isaac Mophatlane, the chief sales and marketing officer, will lead global sales, marketing and customer management. Regional heads across the continent will report to him.
Over the coming months, the business units will be reorganised into three divisions: converged infrastructure solutions, business solutions and investments and alliances. The company expects to announce new executive teams for the three divisions soon.
Jane Canny will become chief operating officer and take responsibility for global operations of the converged infrastructure solutions and business solutions divisions.
Matthew Blewett will become the chief investment and alliance officer and will also be responsible for the mergers and acquisitions division.
The restructuring comes at a time when companies globally are gearing up to offer an end-to-end value chain of information technology (IT) services.
Mophatlane said the company had blazed an acquisition trail over the past 12 to 18 months to boost its offering.
Lawrence Weitzman, the chief financial officer, and Grace Dipale, the executive for group human resources, will support the reviewed group executive leadership team.
“The new structure will also enable us to deliver services and solutions that address the evolving needs of our customers by channelling talent more efficiently, improving collaboration across the organisation and leveraging the strength of our collective assets,” the company said.
Dirk Noeth, an analyst at Avior Research, said the restructuring was likely, “given the on-going evolution of the IT services market and the fact that their peer group appears to be consistently gaining market share”.
BCX undertook a restructuring about four years ago, which cost in excess of R100 million, Noeth said.
“Reorganisation usually implies that management is finding something is wrong in the way it does business – or you need to reposition yourself for growth or new markets.”
In a recent report, the International Data Corporation recognised BCX as South Africa’s leading IT services provider, displacing long-term incumbent Dimension Data. BCX grew its market share to 14.2 percent in 2012.
Noeth said, however, the market ignored reports. “Investors care about earnings, cashflows and growth.”
BCX shares dropped by 1.73 percent to close the day at R5.68 on the JSE yesterday. - Business Report