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In light of the global economy, it's refreshing to hear of a South African outsourcing company being sought out for their expertise and innovation. Fedics, a division of Tsebo Outsourcing Group, now has a foothold in the Middle East, having partnered with Al Karam Al Arabi, the catering division of Arabian Services Group (ASG), a Xenel Group Company, one of the oldest trading companies in the Middle East. Karam Fedics Services is the resulting company, in which Fedics has a 40% shareholding. Tsebo Outsourcing Group CEO Clive Smith explains through the Group's expertise and intellectual capital, Fedics has been able to expand into a new market, while bringing a new skills set to the Middle East. "The market potential in Saudi Arabia is vast, even taking into consideration the global recession. Their Government has put many projects into place to speed infrastructure development, many in remote locations such as a new railway infrastructure and a security wall stretching along the entire border with Iraq." With many of the Tsebo Group's sites being in remote areas of southern Africa, Smith says they have a strong specialist service base, which has translated well into the remote sites they are now servicing in Saudi Arabia. "While the Middle East has the best money can buy, Fedics has been able to impart a wealth of outsourcing knowledge, gleaned from our years in the industry." This includes the complete financial and stock control systems which are vital to any catering operation, as well as food innovations which include branded food courts showcasing the company's in-house developed brands and an excellent coffee solution. Smith explains their Saudi partners first approached Fedics at the end of 2006. "Even though Tsebo Outsourcing Group has a footprint in southern and central Africa, we had never considered the Middle East due to the cultural differences. Partnering with a local company thus made sense and is inline with our expansion strategy." Currently most of the sites comprise oilrigs and industrial plants, but Smith says the expansion potential encompasses sectors such as healthcare, education and obviously government. "Karam Fedics Services plans to expand into nine other Gulf countries, so Saudi would essentially be the blueprint for any future growth." With a client base comprising mainly oilrigs and industrial sites, logistics and staffing - due to the remote location - has been the biggest challenge to date explains Smith. "Many supply companies don't deliver to these outlying areas and we have had to source warehousing for storage." Currently comprising 487 staff: two are South Africans, 13 Saudis and the remainder from India, Pakistani, Nepal, Philippines, Bangladesh, Malaysia, Jordan, Egypt and Lebanon. This does make for an interesting staff complement, says Smith. "Working in another country always has its challenges, but Tsebo Outsourcing Group has considerable experience in remote locations, which has made for a smooth transition." With outsourcing being such a dynamic market, Smith explains it is now a vital and effective tool, allowing clients to focus on core revenue activities, knowing peripheral yet crucial non-core activities are in the hands of experts. "Through the integration of these services, Karam Fedics Services provides a platform to not only extract value efficiencies, but create a sustainable framework in terms of quality and service delivery." ENDS Words: 545
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