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Emitac Group prepares for change in structure

IT group reveals each business unit will become a separate legal entity by end of the year

Emitac Group prepares for change in structure
Balall Yaqub believes Emitac will thrive from giving its four main business units greater operational autonomy.

Each of the four main business units that comprise the Emitac Group will be converted into separate legal entities with complete operational autonomy by the end of this year, the company's group executive director has confirmed.

The reorganisation is designed to leave each unit (IT distribution, enterprise solutions, mobile solutions and healthcare) with a full management, financial and commercial business structure, and therefore the flexibility to go to market as independent businesses.  

Emitac plans to put a shared services concept in place to address the common functions of corporate marketing, HR and IT, as well as the book-keeping aspect of financial accounting, but aside from those each unit will be responsible for their own strategy.

The move will cap an initiative that Emitac first embarked on three years ago when it consolidated 17 existing major revenue streams into the four business units that exist now. In April last year it then took the step of appointing respective CEOs for each of those businesses.

"We have started the legal aspect [of separation] and we are completely revamping our ERP," explained Balall Yaqub, group executive director at Emitac Group. "We have just signed up with Oracle and that's a project which is already under implementation. The shared services concept has already been agreed to, so as soon as the Oracle ERP is in place we will start implementing that."

Yaqub said he expected the changes to be finished by the end of the year and that they were not dependent on the performance of each unit.

"Each of these units now has a very long history of being established - and a very successful history - so I think the business model is tried and tested," he said. "Even though we have some very challenging markets at the moment, each of the businesses has a growth mandate. Year-to-year we have grown more than 30% over the last three years. We have achieved that by having a better focus on each of our businesses and gaining market share in each of the products and services offerings that we have."

The new structure is not thought to involve any change in ownership details. UAE-based Emitac, which is a major HP partner and the regional distributor for RIM, is part of the Bukhatir and Ghobash Group of Industries.

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