Indian companies are increasingly coming into the equation as South Africa seeks to address the critical shortage of skills in the local IT industry. In the latest news, the IQ Business Group has teamed up with a leading India-based software and BPO (business process outsourcing) solutions company, Prodapt.
According to IQ Business Group’s Craig Rodger, South Africa’s economic growth is outstripping the availability of skills. This shortage is amplified by South Africa’s focus on becoming an ICT economy. To achieve this objective, the country requires significant supporting skills.
“As a company IQ provides practical business solutions and leveraging off India’s track record in building significant capability in ICT and related industries is one such solution,” he says.
IQ and Prodapt have created a new joint venture company, ProdaptIQ, that will source and manage highly skilled Indian software developers required on-site by local organisations on a medium- to long-term basis.
In addition, ProdaptIQ will facilitate the offshore outsourcing of software development to Prodapt’s own development laboratory in Chennai, India. Prodapt has been awarded Maturity level 5 of Capability Maturity Model Integrated (CMMI) for Software and Systems Engineering disciplines and is also ISO 9001:2000 compliant.
Rodger, who has been seconded by IQ to head the new joint venture, says IQ has been experiencing increasing demand from clients for the types of services that will be offered by ProdaptIQ.
“We are seeing a shortage of up to six developers in virtually every one of our engagements with clients. Critical IT projects are missing key deadlines and going over-budget because companies are having to stretch their scarce developmental resources beyond optimal efficiency levels.
“Through Prodapt, we are not only able to tap into the vast lake of highly skilled Indian resources – particularly those with much needed .Net, Java and IBM WebSphere skills – we are also able to draw on Prodapt’s experience in providing these resources at a cost-effective rate to organisations of all sizes around the world,” he says.
Prodapt is no stranger to South Africa. According to Prodapt COO, C Raghuraman, the company has been working with large South African telecom majors in partnership with Sun Microsystems for over three years.
The company also has offices in the Unites States and United Arab Emirates, and agreements with companies in Europe. Prodapt is part of the Jhaver Group, a conglomerate of industrial companies that employs over 6 000 people in India, across over 45 offices.
‘We wanted to increase our presence in South Africa and felt it would be best to do this in a joint venture arrangement with a local company that was familiar with the local market, could provide impeccable BEE credentials, offered services that were complementary to ours, and had a culture and values with which we could identify. IQ meets all those criteria,” he says.
Prodapt will hold 51% of the equity in ProdaptIQ, with IQ holding the rest. ProdaptIQ is registered in South Africa.