Pep Stores, a leading player in the South African retail sector, has signed a major outsourcing agreement with Universal Computer Services (Universal), a subsidiary of the JSE-listed UCS Group Limited.
As part of the agreement, Pep will evaluate the replacement of its existing IT retail systems with Universal`s unique, cost effective and proven architecture and applications. Universal will also take control of Pep`s IT department including its staff complement of 38 people.
Lester Aderem, chief operating officer of Universal, said that this was one of the most significant elements of the new relationship.
"We are delighted to be welcoming the Pep IT team to Universal. They bring with them a wealth of experience and skills which will significantly strengthen Universal."
The agreement brings to 25 the number of furniture, clothing and speciality retail chains serviced by Universal. The Pep chain is expected to add a further 1000 in-store systems to the 2 700 systems already installed and supported by Universal in South Africa.
Andr'ee Labuschaigne, managing director, Pep Stores, said research has proven that all world-class retailers have one thing in common - world class IT systems.
"As part of our continuous world-class drive, our systems have to be reviewed periodically. In Universal and the UCS group, we have selected an IT partner with the best retailing systems and expertise in South Africa," he said.
Labuschaigne said the contract would enable Pep to move away from US dollar-based costs to a license-free software environment and Universal`s powerful and flexible applications.
Aderem said that existing applications could be replaced in a phased approach and that Universal will look after all facets of Pep Stores IT functions.
"We are proud to have been selected as Pep Stores strategic IT partner for the future. We look forward to being able to add value to their business."
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