Telkom’s billion rand software spending questioned

Concerns have been raised about Telkom’s alleged plan to replace a workforce management system, which may cost the company a large amount of money.

MyBroadband received information from a source with knowledge of the situation that Telkom plans to replace its current workforce management system, which apparently cost the company R1.2 billion.

According to the source, Telkom wants to replace its current system with a new one through a partnership with AMDOCS.

This is not the only concern. The source added that Telkom is planning to spend more than R600 million on a CRM system that does not conform to their current requirements known as Clarify.

Money spent by Telkom Mobile to install is own CRM and billing system is also seen by some as an unnecessary expense.

An independent source close to Telkom confirmed that this information is accurate, adding that it is a sensitive issue at the company.

In the past, Telkom also had a battle over software services which cost the company millions. In 2010 Telkom settled a dispute with Delaware based Telcordia after a lengthy legal battle which started in 2001 after Telkom felt that Telcordia did not fully satisfy their delivery obligations.

Telkom comments

Telkom was asked about these issues, but the company said it cannot comment because of confidentiality agreements.

“Supplier contracts and the specifics of value spent with suppliers are bound by strict confidentiality agreements between Telkom and all of its suppliers. Telkom is therefore prohibited from disclosing information and/or commenting on this matter,” Telkom said.

Another question raised by the source is a project where one of Accenture’s business partners will assist with software interfaces between software systems.

Telkom has a strong relationship with Accenture, and clarity was requested on whether a legal, accountable and clear procurement process was followed for this project.

Telkom explained that it has a long standing master services agreement in place with Accenture.

Telkom also dismissed concerns about unnecessary spending or costly mistakes when it comes to its software systems.

“Telkom rigorously reviews and scrutinises all forms of external third party expenditure, and continues to remain focused on maximising value from its expenditure with software providers,” Telkom said.

De Wet Bisschoff, Accenture South Africa’s Managing Director: Communications, Media and Technology, confirmed that Telkom is a client of Accenture, but said that any detail is subject to client confidentiality and cannot be disclosed.

“Accenture has various partnerships in the market, but these are again bound by confidentiality and we cannot offer a comment at this time, nor do we wish to confirm or deny the below,” said Bisschoff.

MyBroadband contacted AMDOCS for comment, but the company did not respond by the time of publication.

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Telkom’s billion rand software spending questioned