Citec signs Baycorp contra deal
- 29 September, 2004 17:18
Citec Confirm, the information brokerage division of IT services provider Citec, has entered into a three-year services agreement with NZ based business intelligence provider, Baycorp Advantage.
The deal will see Citec gain access to Baycorp's risk-reduction and real estate sales databases and reports, thus strengthening its services offering, Citec managing director, Mark Rainbird, said.
"We have A/NZ clients in the financial, legal and mercantile industries that in the past would have had to go to separate service providers for their information needs," he said. "The strategy here is to be able to offer those services from one vendor."
Baycorp also stood to benefit from the deal by gaining access to Citec's own databases, Rainbird said.
"It's a contra deal on data sources," he said.
"Both organisations are expecting to grow the information brokerage pie rather than cannibalise each other's business as a result of this deal." The information brokerage business, which was worth some $50 million a year to Citec, was now in a better position to compete against the likes of Lawpoint, ABR, and D&B, Rainbird said.
"This adds new data services out of New Zealand that we previously haven't had access to," he said. "We have been operating primarily in Australia, so this deal also opens up a new market for as well."
Increasing inbound traffic from overseas organisation looking for information around Australian corporations law and land titles had also motivated the services agreement, Rainbird said.
"It is a good client acquisition vehicle for us to go and cross sell," he said. "We've had a lot of success in the financial area, but would like to improve our success rate in legal. We provide good information brokerage services, but haven't cracked selling them IT services yet."
Citec's information brokerage business was also increasingly important to the company's overall business, Rainbird said.
"Confirm is about 40 per cent of our business and it has been expanding," he said.
"IDC also predicts a compound annual growth rate 10.6 per cent for Citec Confirm, in comparison to an industry average of 7.8 per cent."
With aspirations to be number one in the market, Citec is also looking to add to its organic growth via a possible acquisition.
"The market is fragmented and there are opportunities for larger players like us to use their expertise to consolidate," Rainbird said.