In a strategic ploy designed to ensure SME status and a prosperous future as a government outsourcing partner, Com Tech has agreed to a management buyout proposal by its Canberra operation.
Born from this agreement is a new company, Com Tech Integration Services (CTIS), which will be jointly owned by Com Tech Comunications and the local Canberra outfit.
According to Tony Whigham, CTIS' managing director, the move was an "innovative decision" in an attempt to position the company as an SME partner for upcoming Government contracts.
"The Federal Government's IT Outsourcing Initiative and Industry Development Framework represents a significant and strategic volume of business for Australian SMEs," Whigham said.
Although operating as a separate company, CTIS will leverage Com Tech's existing infrastructure, a capability which Whigham believes is crucial to partnering with larger outsourcing organisations.
Com Tech's legal and financial advisers worked closely to ensure CTIS qualified as an SME under the Government's Industry Development Framework with further consultation with the Office of Asset Sales and IT Outsourcing, Whigham claimed.
Responding to the current market conditions in Canberra, Whigham feels that "being a small multinational is not a good place to be".
"This is a great opportunity for the local staff in Canberra, not only to have individual ownership in CTIS, but also the confidence that CTIS will maximise the opportunities for their further technical development. It opens up new opportunities for everyone involved in the business - opportunities that may not have been available as a non-SME organisation," he said.
Former senior public servant Noel Tanzer has been appointed to the board of directors along with Michael Gration (sales director) and Joel Morosi (technical director).
David Shein, managing director of Com Tech Communications, claimed: "Com Tech places great value in attracting and retaining its staff and this became a major consideration in accepting the buyout proposal."