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Consolidated outsourcing paves the way

In today’s highly competitive outsourcing market, with most large players bringing the same offering to the table, what sets one company apart from the rest?

Clive Smith, CEO of Tsebo Outsourcing Group (Tsebo), explains the South African outsourcing industry – including catering, cleaning and facilities management – is currently worth between R50 to R75 billion, with only a very small percentage outsourced.

“In this dynamic environment, outsourcing is the answer as it is a vital and effective tool, allowing clients to focus on core revenue activities – with the peace of mind and confidence that peripheral yet crucial non-core activities are in the hands of experts.”

Through their integrated offerings, Smith says the Group can blend the resources of a large company with the specialist services of their divisions; all supported by a national network of experienced staff and established infrastructures.

“The Group offers a complete circle of services, able to cater to a client’s retail, procurement, cleaning, facilities management, catering and outsourcing needs.”

“Clients value this streamlined efficiency – especially pertinent during economic uncertainties – when they know they are receiving top level service, at a competitive price, from suppliers they trust.”

According to Smith, with mainstream trends impacting the industry, flexibility and adapting to change have become important fundamentals. “An example of this is the move to healthier eating now reflected in our menu options, with chefs and dieticians designing meals to ensure optimal nutritional value, which also impacts on productivity.”

The result of this was branding initiatives that arose as a response to consumer demand for more diversified meals. “To satisfy new eating patterns, outsourced catering had to put itself in a position to offer a wider and more varied range of food options in a relaxing environment.”

He says the Group had to rethink how to do business in order to maintain their leadership position, introducing brands and segmentation to differentiate.

“As Fedics owns and operate these brands – this means clients have greater flexibility in menu selection and pricing, while having the peace of mind of being associated with a recognised service management company.”

Understanding your market and looking for opportunities to offer clients more value is vital explains Smith, to remain dynamic and at the forefront of the industry.

“We looked at our growth strategy – both organic and through acquisition – and have capitalised in certain areas.”

He explains the Group acquired Equality Food Services in 2007 and after identifying many synergies with existing division Fedics Reef Food Services, amalgamated interests to increase capabilities and offer clients a comprehensive service.

“Clients can now capitalise on the value extraction under Equality Reef Services, which offers the mining sector a consolidated outsourcing solution.”

Smith explains the integration of all outsourcing services within one company not only provides a platform to extract value efficiencies, but also creates a sustainable framework in terms of quality and service delivery.

As South Africa’s leading black-owned hospitality services and facilities management companies, Tsebo Outsourcing Group now has a footprint ranging from Southern Africa to Saudi Arabia.

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