Document management specialist Xerox has signed another 10-year exclusive distribution partnership with Bytes Document Solutions (BDS), a subsidiary of Altron’s Bytes Technology Group.
The two companies have had a partnership for 24 years and the Xerox business makes up the bulk of BDS’s revenue. BDS reported R2,06bn in sales in the financial year to 28 February 2010.
“The agreement we had in place with Bytes was only due to expire two years from now, but we decided to renew the contract early so that customers with existing contracts are not affected by any transitions,” says Marcus Childs, vice president and GM of Xerox in the Middle East and Africa.
He says it will also affirm to customers that Xerox is here “for the long haul”.
BDS CEO Hennie du Plessis says the agreement will “make it easier for us to plan and justify our decision to expand our African footprint”.
Bytes operates in 26 African territories (other than SA), and Xerox is in talks with Bytes to increase its investments in at least some of those markets.
It hasn’t been decided how much will be invested yet, but Childs says money will be spent on skills development, marketing and services expansion.
Increased African investment forms part of Xerox’s strategy for the Middle East and Africa.
Managed printing services will make a key part of the expansion. “We are looking at software and solutions around this,” says Childs.
Xerox also plans to create new channels, strengthen existing channels and use high-level value-added resellers to boost its brand on the continent.
Altron’s share price was down 1,8% at lunchtime on Monday; the share has risen 4% in the past year. — Candice Jones, TechCentral
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