Earlier today, specialised software and digital business solution experts Adapt IT, released its results for the financial year, ending 30th June 2020. The results, which were solid across the board, are particularly of note as Adapt IT was able to find success in a year when it has proved difficult to do so.
This as the COVID-19 pandemic has created a general atmosphere of chaos and uncertainty for a myriad industries and businesses, with the continued national lockdown only further exacerbating issues.
To gain a bit more insight into how the company was able to achieve this, as well as what the coming months hold, we spoke (remotely of course) with Adapt IT CEO, Sibusiso Shabalala.
Casting a wide net
As far as what he attributed Adapt IT’s success to, with a 3 percent increase in revenue to R1.483 billion, Shabalala pointed to diversification as a key element in the businesses’ strategy.
It is also a strategy that was not reactive to the events of COVID-19 either, with the CEO noting that diversity, both in terms of the types of customers and industries, as well as geographic locations, is one that has been a focus for some time now at Adapt IT.
As such, it is a strategy where the company has been able to find success, where others have faltered.
“I am pleased to report that in a year dominated by global macroeconomic challenges and the Covid-19 pandemic, Adapt IT proved to be highly resilient, through its sound underlying business model of providing mission critical software to its clients on a long term basis,” he adds.
Looking a bit more closely at the industries where Adapt IT has found success, Shabalala explains that some proved more viable than others. He points to hospitality (7 percent decline) as one where very little success could be found as a direct result of the pandemic, but that education and financial services proved to industries where the company’s digital solutions found a great footing.
Focused on disruption
Zeroing in on the education specifically, he noted that Adapt IT has been working with institutions in higher education for some time now, and that the solutions being delivered on that front should prove successful. This as Shabalala classifies higher education as an industry that favours disruption.
Offering up some number, he notes that there was an increasing demand for elearning solutions, with it contributing to 16 percent of the total revenue for the company during the financial year.
Financial services proved similarly integral, with it seeing revenue growth of 12 percent, as more contactless solutions and ecommerce services were required.
“The response of our people to these circumstances has been outstanding, with the business virtualising pro-actively ahead of the legislated lockdown minimising impact on service delivery to our customers,” he explains regarding Adapt IT’s approach during the pandemic.
“Additional remote work digital technologies were adopted instantaneously and sustainability. The already advanced state of our migration to Cloud platforms was a significant enabler of our success and contributed to the improvement in employee engagement,” he continues.
Along with the positive areas of growth for the company, Shabalala relished the fact that Adapt IT achieved Level 1 B-BBEE status during the pandemic, which is something that it has been working hard to make happen as part of its transformation goals.
“Adapt IT has long been committed to transformation as a social and a strategic imperative, and continues to transform sustainably,” noted Shabalala.
The key for the CEO, however, is keeping ahold of the status, especially as it opens up opportunities to work with a wider network of customers and industries.
More to come
Looking forward, Adapt IT is confident that its recent successful weathering of the storm during a pandemic year, bodes well for 2021.
“The South African economy has been hard hit by the Covid-19 pandemic and the associated regulations, but the impact on our segments is mixed, with some presenting new opportunities, like increased eLearning and telecommunications use,” says Shabalala.
“Adapt IT continues to take advantage of its underlying diversification. This is done by assisting the current client base more effectively, focusing on sales in a cohesive manner and carefully expanding on the Pan Africa and Asia Pacific strategy. Furthermore, by remaining focused on cost containment, capital allocation and working capital, Adapt IT aligns itself with stakeholder expectations,” he concludes.