Bogoshi bullish on GijimaAst growth

Johannesburg, 12 Jul 2007

GijimaAst needs to take advantage of opportunities in network services, says its new CEO and executive director, who will drive an initiative to establish the group's own virtual private network (VPN).

Jonas Bogoshi, former State IT Agency chief of strategic services, took over the reins from John Miller at GijimaAst at the beginning of the month. He is bullish about growing the company and leveraging core competences to drive revenue.

Giving one of his first interviews in his new position, Bogoshi says he will spend the next two to three months getting an understanding of and reviewing the business, specifically looking for gaps in service offerings.

"I can see opportunities in network services that we are not taking advantage of," he says, adding that GijimaAst supports some of the largest networks in the country. "The question is: why are we not providing our own VPN and services? That's something we need to look into."

Bogoshi says that, at this stage, it is too early to say whether the company would go it alone or partner with someone else to build the network, but notes this position will be clarified within the next few months.

"For most of the customers for whom we provide hosting services, we need to partner with someone to provide the networking component. For some of our customers we support their entire network, as if we own it. My view is that we need to have our own VPN."

The convergence of voice, data and video gives the company huge opportunities to increase revenue streams, Bogoshi explains. He adds that GijimaAst has the requisite skills to drive the project, without it being a big transition.

Expanding outsourcing

At this stage, Bogoshi declined to identify potential partners, should the company choose to adopt a collaborative approach.

As part of reviewing and improving the business, the company will also expand its outsourcing services to include hardware sales. This move, he says, is a response to customer demand to have a "one-stop shop".

Bogoshi predicts further consolidation in the IT outsourcing space, and says growth will be a focus for GijimaAst.

"We're looking for profitable growth, and that may be organic or through acquisitions. That is something that we have not decided yet," he explains, hinting at a possible departure from his predecessor's taste for organic growth.

He declined to comment on any potential attractive takeover targets.

Bogoshi says he will embark on several roadshows in the Cape within the next few weeks, to meet with the company's employees and large customers.

"Over and above, I need to build credibility with the employees and show that, as a new CEO, I know what I'm talking about. I'm here for the long haul, to build a company that will be here for a long time."

The company will release its financial results on 29 August, and will then be in a better position to chart its strategic course, Bogoshi states.