The Kaz Group has gobbled up Canberra-based IT services provider, Iocore, in a bid to boost its mainframe development and business intelligence (BI) services to the government market.
While Kaz has dabbled in the mainframe and BI realm in the past, the Iocore marriage broadens its capabilities in the application development services market in Canberra, managing director of Kaz Technology Services, Andrew Richardson, said.
“Iocore has a strong skills set that is much in demand in the Canberra market,” Richardson said.
Areas of opportunity include project work and application design, he said, including consulting and business analysis.
“This involves the design, development, coding, testing and deployment of systems,” he said.
As part of the strategy, Kaz plans to take advantage of Iocore’s strong working relationships with a host of government departments including the Australian Tax office, customs and education.
“It is a logical progression for us to add Iocore into the mix as it gives us 370 staff on the ground in Canberra to meet federal government department needs,” Richardson said.
Integrated into Kaz’s Canberra operations, the head count of the service provider’s ACT staff pumps up from 100 to more than 370.
The additional feet on the street were needed, Richardson said, in order to help government departments with the ongoing requirements to upgrade IT infrastructure – and security was high on the list of priorities.
“Clearly, security is a hot topic across all of the departments and we’re providing a lot of support to government agencies in this area,” he said. “Security in Canberra has multiple dimensions both in terms of risk management and business continuity right around the country, but also in terms of helping the government deliver appropriate security services.”
In addition to security, other service opportunities include mobility (the development around .Net and Java), as well as a continued movement towards selective sourcing in the managed services space.
And while Kaz gets mainframe and BI expertise across a host of accounts, Iocore gets the raw horse power and capability of Kaz that the company needs in order to motor in the Canberra market over the long term.
“It’s fair to say that Iocore’s owners were looking for an appropriate way to exit the business because you need to have a certain scale and capability to see long-term opportunities in the market," Richardson said. "They weren’t quite there yet in terms of that robustness with the balance sheet and long-term deep commitment to the market.”