Software development company MIP Holdings has recorded revenue growth in excess of 18% and bottom-line growth of 13% for the 2008 financial year – and January 2009 was the strongest growth month in the company's history.
CEO and chairman Richard Firth attributes the growth during generally poor economic times to the company's business model, reorganised internal structure, the spread of products, and updated solutions.
"We do not sell systems: we provide solutions on a shared risk basis," Firth says. "We charge clients per policy or benefit, per member, per month, and we share the risks and the rewards."
MIP develops software solutions for the financial services administration industry focused on collections of contributions and payment of benefits in healthcare, employee benefits, life assurance, vehicle warranty and maintenance, treasury administration and lending solutions.
The company's systems touch the lives of nearly 6,5-million South Africans through customers such as Resolution Life, Coris Capital, Allcare, Primecure and Definiti.
"Due to our model, some of our growth comes from new sales but also from the growth our clients have experienced while using our systems," says Firth. "In addition, many companies have been nervous of the downturn, but administrators still need to run their businesses and many have sought locally developed software to underpin their core systems due to the deteriorated rand-dollar exchange rate."
South Africa's economy still sees growth from traditionally under-serviced markets.
MIP also restructured during 2008, separating its various administration solutions into divisions to drive accountability and quality of service delivery.
It invested in research and development that resulted in solutions that are Internet-capable.
"The Internet is becoming increasingly important to ordinary South Africans," says Firth. "It is a valuable tool people use to conduct business and interact with their service providers. Our customers need systems that can interact with their clients across the Internet and transact online with their partners. Redesigning our solutions taking a software-as-a-service (SaaS) approach has played a vital role in bringing that to fruition."