Cape Town-based redPanda Software has been selected by UK-based point of sale solutions supplier PCMS, to provide offshore software development services to their core development group.
The contract is initially for three years with automatic extension after that period, says Gareth Hawkey, CEO of redPanda Software.
According to redPanda, PCMS is expanding rapidly and the redPanda Software relationship will help to support that growth with access to additional dedicated full service teams. These teams will be used as an extension of the PCMS teams to deliver projects for the point of sale solutions provider's customers globally, it says.
It says redPanda Software was chosen for its expertise and track record of delivering agile projects to the retail industry, a key criteria during the selection process.
Hawkey says the partnership with redPanda Software will enable PCMS to increase its development capacity, to accommodate its rapid expansion, but at very low risk and without making any changes to its existing customer cost structures.
"This is a true partnership in that redPanda Software will become part of the core development processes from our Cape Town office.
"This is not the old model of ‘body shopping' and satellite management – we will have full featured self-managing teams contributing at the same level as the UK-based teams."
He says factors such as the strong parallels in the cultural realm, technical similarities, a shared time zone, and the fact that South Africa and the UK speak the same ‘business language' all bode well for the partnership.
According to Hawkey, amid the current economic and political uncertainty in South Africa, this partnership is a good news story, not only for redPanda Software, but also the South African IT job market.
He says a result of the partnership, 18 new jobs will be created and it will bring much-needed foreign currency to the country.
However, Hawkey says as with any working relationship, maintaining strong ‘communication and collaboration' will be key.
Software development is highly complex and is not something you can simply draw plans for, like constructing a building, he notes.
"There are so many different – and constantly moving – parts in the process, so ongoing communication will be critical and something we will focus on.
"If there are more success stories like this one, the UK and other international markets will take notice of SA as possible global outsourcing destination," says Hawkey.