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Johannesburg - Talent management services provider Bytes People Solutions, a subsidiary of technology company Altron TMT, is beefing up its outsourced operations thanks to an acquisition deal.
Bytes People Solutions - which is also part of the Bytes Technology Group - announced on Monday that it is buying customer interaction management business Inter-Active Technologies.
The deal, which is subject to regulatory approval by the Competition Commission, is aimed at helping Bytes People Solutions boost its business process outsourcing (BPO) services. Inter-Active specialises in the likes of call centre consulting services and customer service software.
Bytes has not revealed the value of the deal. But Dr. Madelise Grobler, managing director for Bytes People Solutions, told Fin24 that the deal will give her company a 10% market share in the South African BPO space as Inter-Active has previously been a competitor for the company.
"It's consolidation for the market,"Grobler told Fin24.
"Basically I've looked at acquisitions in the BPO space for the last year," said Grobler regarding the Inter-Active deal.
Bytes further said in a statement that it is “well-poised” to integrate Inter-Active Technologies as a “going concern”, including its employees, customers, suppliers, assets and facilities).
The deal also signals healthy IT spending in South Africa’s economy, which is struggling to grow more than 2% this year.
According to the International Data Corporation (IDC), IT services spending in South Africa is expected to increase 10.5% year on year in 2015 to total $5.7bn.
* Follow @GarethvanZyl on Twitter. For more tech news, follow Fin24tech @Fin24_Tech.
