MIP Holdings has been accredited with Proudly South African status. The 100% South African-owned systems and software developer sells and supports its systems locally and internationally.
Richard Firth, CEO of MIP Holdings, says the Proudly South African accreditation - bestowed on local companies that are helping to create jobs and economic growth in the country - demonstrates MIP`s commitment to SA.
"Companies which want to be in business in SA must show support for the policies of this country and the economic direction in which it is heading. Our Proudly South African accreditation is one way in which MIP is actively supporting economic development. It is also testimony to the quality of our locally developed solutions and services."
The Proudly South African accolade is awarded to companies that meet certain requirements including:
*.The company`s products or services must incur at least 50% of production costs, including labour, in SA, and be "substantially transformed" (a product that is merely imported and re-packaged would not be eligible);
*.The company and its products or services must meet high quality standards;
*.The company must be committed to fair labour and employment practices; and
*.The company must be committed to sound environmental standards.
The initiative assures consumers that companies and products carrying the Proudly South African symbol are of a high quality, socially responsible, and supportive of the local economy.
"Proudly South African is a way for companies and people to make a contribution to nation-building," says Firth.
With the downturn in international markets, there is much pressure on global companies to boost revenues from their regional subsidiaries. As a result, these companies are absorbing more and more of the third-party business that used to be available around their own offerings.
According to Firth, certain players in the motor industry have, for example, stated that their dealerships must run on international software. As a result, local companies are not being given the chance to prove they can provide similar services for these dealerships and are being prevented from participating in local implementations.
"Clearly, this is a new form of colonisation, with international players coming into SA, making fortunes off the local market, and allowing less and less of their profits to stay in the country," Firth says. "In this context, Proudly South African is an important initiative that should be backed by all local companies committed to the development of our country in the long-term."
Similarly, companies are rushing to fulfil the requirements of employment equity and black economic empowerment (BEE) policies, yet many of those companies repatriate large amounts of the revenue they make locally. "People are quick to attack the government, as evidenced by the furore around the recent IT tenders that went out which specifically excluded local companies. But few are willing to investigate the activities of the corporate world in this regard," Firth notes.
"MIP is one of those companies making fairly good revenues offshore, but we are proud of the fact that everything we make is channelled right back into SA. We believe this policy demonstrates true support for economic growth and the principles of the Proudly South African initiative."
Firth says two factors will drive the local uptake of South African products and services in the IT industry. First, many local companies are doing good business overseas and the international market has high regard for local IT skills. This will eventually filter down to the business community and the government sector, particularly as more implementations are done locally, and as the volatility of the exchange rate makes internationally priced software and maintenance contracts fairly risky, thereby compelling us to look within for solutions.
Second, it is important to note that most international software is developed for First World conditions. Local software is developed with South African conditions and requirements in mind, and takes local delivery mechanisms into account.
"We subscribe wholeheartedly to the ethos of the Proudly South African campaign in terms of quality, service and equity," notes Firth. "MIP`s international successes have proven that a South African company can deliver world-class products and services that compare with the best in the world."
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