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T-Systems embraces Enterprise Supplier Development in line with new BBBEE codes of practice

by david.nunes

T-Systems embraces Enterprise Supplier Development in line with new BBBEE codes of practice

6 May 2015

As the new Broad Based Black Economic Empowerment (BBBEE) codes come into effect, a greater focus on Enterprise Supplier Development (ESD) is coming to the fore. Enterprise Supplier Development aims to uplift South Africa through sustainable economic transformation, driving entrepreneurship through the creation and maintenance of small businesses with the assistance of corporate South Africa. At T-Systems, ESD has long been a part of their nation building agenda, as it creates win-win situations for local economic transformation and upliftment.

BBBEE codes have been updated given the increased urgency for economic transformation. Sustainability is one of the biggest challenges within business, specifically for small businesses, and ESD initiatives provide opportunities for small businesses to become integrated into the value chain of big business.  Corporate South Africa has a responsibility to support these small entrepreneurial enterprises, as improving economy is essential for businesses of all sizes. By integrating small businesses into the value chain, corporates can provide opportunities and support to enable long-term sustainability.

The T-Systems Nation Building program is a part of the organisation’s global commitment to adding value for customers by transforming their ICT landscape through ICT that works. ESD forms part of the company’s external nation building program, which focuses on contributing to the bigger South Africa through skills development, localisation and job creation.  Through Enterprise Supplier Development, T-Systems is able to create local businesses that are integrated into the company’s overall value chain, enabling sustainability.

Says Adre Du Plessis, Vice President Strategy & Transformation at T-Systems in South Africa, “The opportunity is given to both internal and external applicants to set up their own business without any shareholding from T-Systems. Through this model local small businesses are being developed, while customers benefit directly from doing business with a multi-national ICT organisation in terms of guaranteed levels of expertise, service delivery and risk profile. We sub-contracts certain ICT services to these suppliers to help support both the business and the expectations of their customers.”

In order to ensure the sustainability of these new businesses,  T-Systems provides support on strategic, tactical and operational levels, with both formal and informal support being offered throughout the process. A foster care program touches all parts of the business and provides guidance in terms of the strategic direction, solutions and other aspects as needed.

The success of ESD can be seen through the two ESD companies launched by T-Systems since 2013. Nkgwete IT Solutions, based in eMalahleni, Mpumalanga, was launched in July 2013 and Vumela IT Services officially opened their doors in KwaZulu-Natal on the 1st of November 2014.  All ventures are also majority black female owned, supporting further transformation goals within South Africa.

Since the launch of each of these companies, their overall service delivery excellence has been highlighted. The companies have become part of the T-Systems value chain, and employed interns from the T-Systems intern programme. In addition, as the companies become more established, they are beginning to win business in their own right, further highlighting the value of the venture.

“I am a firm believer that success is real if it creates opportunities for others, says Siddika Osman, the Managing Director of Nkgwete IT Solutions.

“The T-Systems ESD programme and the establishment of Nkgwete granted me the privilege to create opportunities for others. We have done this by contributing to job creation in Mpumalanga. As our company has grown, our staff have been given opportunities to gain skills and expertise in various areas and this has contributed to their personal development.   We have also given back to the community by supporting learning institutes such Nkangala FET and Tshwane University of Technology, providing students with opportunities for practical training.”

Concludes Du Plessis, “ESD is not only a requirement of the new BBBEE codes, but the responsibility of corporate South Africa to ensure the sustainable transformation of the economy. Thriving businesses are a benefit to all, and supporting entrepreneurs by including them in the value chain of corporate South Africa creates a situation that benefits all citizens of the country.”

T-Systems in South Africa:

Head of Marketing & Communications

Lebohang Thokoane


+27(11)266-0266 (Phone)

+27(78)803-0634 (Mobile)

About Deutsche Telekom

Deutsche Telekom is one of the world’s leading integrated telecommunications companies with around 151 million mobile customers, 30 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2014). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in more than 50 countries and has approximately 228,000 employees worldwide. The Group generated revenues of EUR 62.7 billion in the 2014 financial year – more than 60 percent of it outside Germany.

About T-Systems

Deutsche Telekom considers the European business customer segment a strategic growth area. Deutsche Telekom offers small, medium-sized and multinational companies ICT solutions for an increasingly complex digital world. In addition to services from the cloud, the range of services is centred around M2M and security solutions, complementary mobile communications and fixed network products, and solutions for virtual collaboration and IT platforms, all of which forms the basis for our customers’ digital business models.

With approximately 47,800 employees worldwide, T-Systems generated revenue of around EUR 8,6 billion in the 2014 financial year.

Since the inception of T-Systems in South Africa in 1997, the company has cemented its position as one of the most successful T-Systems companies outside of Europe. A leading ICT outsourcing service provider locally, T-Systems offers end-to-end ICT solutions in both the ICT Operations and Systems Integration markets. Their extensive portfolio of services covers the vertical, horizontal, IT and TC space. T-Systems South Africa’s head office is located in Midrand with another major office in Cape Town, and 20 further representative offices in locations throughout southern Africa.

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