Paracon Holdings has acquired IT contractors Bryan Hattingh Investment Services from Advtech, giving its services division a greater national foothold as well as access to key parastatal contracts.
If a company is given an option to better manage their IT staff spend and is given an alternate method of payment rather than permanent salaries, the option to use consultants or contractors becomes more appealing.
Graham Bentley, MD, Paracon IT Services
Speaking to ITWeb about the deal, Graham Bentley, MD of Paracon IT Services, says the deal was clinched for R2.5 million in cash in addition to buying BHIS` debtor book for an undisclosed sum.
"We bought the contracts of BHIS, as well as their debtors book but not any of their premises. Advtech also retains the right to the use of the name Bryan Hattingh Investments Services. I believe it was a good move for us and was a fair deal," says Bentley.
Around 170 contractors have moved over to Paracon, 35 in the Mother City area have joined the company.
Bentley says the additional Cape Town staff gives Paracon a big advantage in an area in which it had a smaller presence. The deal has solidified the group`s coastal presence to 200 contractors.
BHIS contacts bring with them a preferred supplier status with both the Department of Water Affairs as well as with SA Revenue Services, and Bentley believes this will give Paracon an in with other parastatals which the company intends to utilise in order to gain further governmental business.
Bentley says the current slowdown in IT spend will not necessarily affect the consultancy business and although he has seen a drop in the IT budgets of companies, especially in the last six to nine months, the way Paracon has structured its offering can offer advantages.
"If a company is given an option to better manage their IT staff spend and is given an alternate method of payment rather than permanent salaries, the option to use consultants or contractors becomes more appealing and Paracon aims to use this to its advantage."
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