MIP, one of South Africa's fastest growing software developers, has expanded its Cape Town operation to meet the demands of a growing client base in the Western Cape region.
Prior to the expansion, MIP had to fly developers from Johannesburg to service client needs on specific projects.
"The expansion means that we can meet current needs and those of the future," says Stuart Watson, regional manager of MIP's Cape Town branch. "Our rapidly growing Employee Benefits team has enjoyed similar success to our healthcare team, with a dedicated team focusing on the employee benefits market, securing clients such as Coris."
The branch now caters for 27 employees, up from four a year ago, and has the capacity to increase that number.
"Cape Town has a good local base of software developers from which we can draw, rather than relocating developers from Johannesburg," says Watson.
Richard Firth, CEO and chairman of MIP, says: "MIP understands the challenges administration companies face, and uses this understanding to develop software that best solves them. By having a larger and better equipped office in Cape Town, we can advise our key clients on their implementations and develop software that meets their specific needs."
Watson says various factors have contributed to his operation's success. "We understand the businesses in the industries in which we operate," he says. "Changes in legislation and regulation contribute to the dynamic nature of financial services, and our employees remain abreast of all of them, bringing that into the latest solutions they develop for customers. Clients are assured that the developed solution always fulfils current industry requirements."
Customers have also been keen to capitalise on MIP's risk-based billing model. The model removes the enormous capital outlay traditionally associated with administration software, billing clients on a monthly per-member/per-policy fee with a sliding scale to reduce marginal costs. The fee includes all software upgrades and any new value-added systems.
""This approach sees capital costs typically associated with software licensing deferred, and instead amortised over time," says Firth. "This makes complex, normally costly software more affordable, lowers costs to potential clients, and allows them to gain parity, and even competitive advantage, relative to larger competitors."