HR Pulse

Telkom Investment

JSE-listed Telkom does not require foreign investment to implement its turnaround strategy, but rather requires skills and competency, says communications minister Dina Pule.

Pule was responding to a question from Congress of the People Member of Parliament Julie Kilian on the expected impact of Cabinet's decision not to allow the telecoms company to sell 20% of its stake to KT Corporation for about R3.3 billion.

The minister said, in a written response, when pondering the proposed deal, “Cabinet took into account the fact that the Department of Communications is driving the government policy of rolling out broadband, in partnership with the private sector, to all citizens by 2020.

“Broadband is one of the key infrastructure programmes that can enable and foster faster and inclusive economic growth.”

Pule said, as a result, it was “even more important that Telkom finds the best and most suitable solution to its current challenges” as it is a key component of the state's efforts to improve citizens' skills.

On 1 June, news emerged that Cabinet would not support KT's proposed acquisition of 20% of Telkom for a lower price of R25.60 for every new share. The parties discussed a share price of R36.06 last October.

“The government recognises the need for Telkom to implement an urgent turnaround strategy, and to get the company back to the critical centre of delivering ICT services to all South Africans.”

Not enough

Telkom faces dwindling fixed-line penetration and falling voice revenue. In the year to March, it reported headline earnings down a third, to R1.658 billion, but its after-tax profit on continuing operations was 93% lower, at R179 million. It slumped to a R90 million net loss, after taking into account discontinued investments, which lost R269 million.

Democratic Alliance shadow minister of communications Marian Shinn questions where Telkom will get the necessary funding, and whether it will become yet another state entity that requires frequent bailouts.

Shinn says KT would have provided Telkom will access to skills, and points out that the company cannot afford to poach the necessary talent from other operators. She says Pule's answer does not speak to whether the deal would have made good business sense.

The department has yet to respond to questions, sent over a month ago, as to why government was not in favour of the deal, which options are being considered and whether Telkom needs a strategic partner.

Source: ITWeb Virtual Press Offices.

Pastel's connected service

Payroll and HR software specialist Softline Pastel Payroll has a Connected Services division that enables SME companies to extend their desktop payroll with an online solution that will ease the growing burden of HR managers and payroll administrators. Connected services include a web-based self-service tool that enables employees to manage and maintain their own information online.

They are able to make on-line applications for leave, loans, bursaries, travel claims, view their payslips and update personal information no matter where they are aslong as they have an internet connection.

“The internet is here to stay and its capacity and connectivity have tangibly improved recently, providing an increasingly compelling service at progressively competitive prices although South Africa still has some way to go in terms of truly competitive pricing,” says Philip Meyer, technology director at payroll and HR software specialist Pastel Payroll, part of the Softline and Sage Group plc.

“Generally accepted standard online applications – those which many people are comfortable using on a daily basis such as internet banking and online flight reservations systems, news feeds and social media sites are all being complemented by steady streams of new online business applications and services.”

Meyer says that the adoption rate of online business software for new entrants into the market is increasing, which poses the question of how to bridge the gap between the growing trend towards online software adoption and the traditional desktop application users in the same market segments.

“The adoption of what many consider to be commoditised uses for the internet is seen as a steady evolutionary process and the switch from legacy desktop applications to the cloud is proving to be a gradual adoption rather than a rush to jump on the bandwagon.”

The advantages and conveniences of connected services can aid and expedite the many benefits of dual-deployment business software models such as client-side hosted applications with significant connected services capabilities and functionality together with a seamless upgrade path to ultimately complete cloud-based models facilitated by vendors.

Connected Services has workflow capabilities based on the organisation chart or a specific workflow order per online form. Once an employee applies for leave online and the manager approves it, the payroll system is automatically updated. The software also provides for leave scheduling, which is particularly practical over traditional December holidays when “skeleton staff” are required. The program helps to manage minimum staff levels by providing system warnings.

Source: HR Pulse News Desk

Dell upbeat on China

Dell chief executive officer Michael Dell said he remains upbeat about emerging markets such as China, its largest market outside the US, despite "challenges" and a business slowdown.

China, which accounts for about $5 billion of Dell's annual revenue, has for years picked up the slack as personal computer spending waned in developed markets. Now the world's number two economy is decelerating also, though its growth still outpaces that of most countries.

"We are bullish on markets like China, India, Brazil," Dell told Reuters in an interview. The company's founder added that it could also count on Africa, which accounts for $1 billion in annual revenue that is expected to grow exponentially.

But "there are some challenges in China," the CEO told executives and investors at the Fortune Brainstorm tech conference in Aspen, Colorado. "Emerging markets are a big deal for us."

Asked if he saw a business slowdown in China, he said: "That would be an accurate statement."

Dell's board will meet in September in China, though the CEO would not talk about what else might transpire there. The world's second-largest economy is growing at its slackest pace in more than three years, according to official data released last week.

China and other emerging markets have long been bright spots for Dell, Hewlett-Packard and other personal computer makers struggling to sustain growth as smartphones and tablets eat into sales. Europe's crisis is expected to curtail PC-buying further in the second half.

Asia's top economy remains at the forefront of global growth, and its PC market is expected to far outpace that of the worldwide industry.

But in past weeks, corporations such as microprocessor maker Advanced Micro Devices and chip producer Applied Materials have warned that growth in the resilient Chinese market was also trending lower.

While the tablet market remains small, demand for the devices is growing much more quickly than for PCs. Shipments of tablets, including Apple's iPad, are expected to grow 90% this year, according to IHS iSuppli.

Despite that exponential growth, the CEO wants to stick to a strategy of serving corporate PC customers. That includes developing both hardware and software to meet their needs.

"We continue to see PCs as an important part of our enterprise business. We are very focused on enterprise solutions and PCs are an important part of that," he said.

"We are building a pretty substantial software business."

Source: ITWeb Virtual Press Offices.

5000 new jobs

StatsSA's Quarterly Employment Statistics showed, that in January there were 8 379 000 people employed throughout South Africa, and that employees were paid for R347,7-billion during the quarter, 4,8% less than in the previous quarter. StatsSA says formal employment rose marginally in the first quarter.

This year 5 000 people were employed in new jobs in the non-agricultural sector. The reports says that by the end of March there were 8 384 000 people employed, an increase of 5 000 jobs.

Source: Publication P0210 - Labour Force Survey (LFS)

Source: Publication P0277 - Quarterly Employment Statistics

Source: STATS SA.

Breast cancer and night shifts?

Working the night shift can throw off your body clock, leaving you feeling tired and sleep-deprived. But, increasingly, evidence suggests that shift work harms health in other ways, raising the risk of diabetes, obesity and even breast cancer.

Breast cancer is the most common form of cancer among South African women and one in every 29 women are expected to be affected by it in her lifetime. Nightshift work may increase a woman's chances of developing breast cancer by 30 percent, according to a new study published in the International Journal of Cancer.

The association between nightshift work and breast cancer was mainly observed in women working during overnight shifts, who worked nights for four and a half years or more, and less than three nights per week on average, said the researchers at the French health research body, INSERM.

"The association was stronger in women who worked at night before their first full-term pregnancy than in women who started working at night later in life," said INSERM director Pascal Guenel.

The link between nightshift work and breast cancer is believed to be caused by a disruption of "body clock" genes, internal desynchronisation and by sleep deprivation altering the immune system. However, the researchers said more research was needed to determine the exact causes.

The study was conducted in France among 1 232 women diagnosed with breast cancer between 2005 and 2007.

Sources: Cansa, Sapa, AFP