Listed ICT group, Gijima says it has launched an ‘internal people optimisation strategy’ aimed at improving efficiency and reducing its cost base.
This streamlining process, the group said, would include reducing its human capital costs by between 8% and 12%, depending on the business area.
Gijima employs approximately 3,080 people, which means that the the group’s actions could see between 245 and 367 people lose their job.
The group said in a statement on Tuesday (15 May) that the ICT industry landscape has changed dramatically, with ICT spend globally under pressure while commoditised offerings have become the most price-sensitive.
“At the same time, clients, particularly those in the financial sector, have come under pressure to be even more competitive following global acquisitions,” the group said.
Gijima said that to adequately respond to such changes, it would also be streamlining its operations focusing on “efficiency, nimbleness, and human resources optimisation”.
Focus would be on ensuring that Gijima’s cost structures remain relevant to its growth plans, market expectations, and are in-line with turnover targets.
CEO, Jonas Bogoshi said the changes in the global market have warranted that Gijima reassess its business operating model and restructure it to make it relevant.
“Our aim is to enhance our business competitiveness, and that of our valued clients, and this optimisation strategy will enable us to do just that, without compromising our track record of quality service delivery.” He said the strategy is part of Gijima’s Vision 2025 plan, which it initiated in early 2011.
The plan aims to enhance Gijima’s competitiveness and position it as a world-class ICT company that that is innovative, ahead of trends, and is customer-focused.
“We are already seeing traction of the plan we have put in place,” said Bogoshi.
As part of the optimisation strategy, Gijima will be streamlining its operations. The first phase of the implementation of the new business structure resulted in some role duplication and staff under-utilisation, which the group is now correcting.
“Unfortunately, this will include reducing its human capital costs by between 8% and 12%, depending on the business area,” the group said.
The group said that it would retain top talent across its skills value chain to ensure that Gijima continues its track record of excellent quality service and delivery.
The process will be completed by mid-August 2012 while the business restructuring will come into full effect on 1, July 2012, Gijima said.
“We aim to improve our performance and enable the organisation to look for and create new opportunities in the ICT space. We are realigning our service and business offerings to create greater efficiencies and enable the organisation to adapt appropriately to market conditions,” Bogoshi said.