Major benefits to be obtained from in-house ASP on accounting systems

Lorge Press Office
[Johannesburg, 4 September 2003] Holding companies or companies with decentralised structures and subsidiaries, divisions or branches located remotely from the headquarters, can benefit significantly from implementing an “in-house ASP” for their accounting and financial systems requirements.

“While the ASP concept itself is not new, it is only recently, thanks to developments in Web applications software and hardware, that the concept offers practical solutions that are affordable to large companies or groups of companies for use in-house,” says Errol Wills, managing director of ACCPAC accounting software reseller and solutions provider Softline Lorge.

Softline Lorge has recently implemented ACCPAC integrated with best-of-breed industry-specific applications into the in-house ASPs of two major organisations, one in the insurance field and the other a listed enterprise in the diversified industrials sector of the JSE.

“The core modules of ACCPAC are installed at the data centre and licences are bought for the required number of users. Great economies of scale are achieved and there is nothing to prevent the company, once it has catered for the needs of its captive in-house market, to begin offering external ASP services to other enterprises.”

The business benefits are significant. The holding company benefits from the consolidation and standardisation of reports and accounting procedures. The use of common formats throughout the group streamlines and simplifies the group accounting and reporting processes. The company also improves its ability to retain its IT specialists because the centralised ASP system provides a career path and a creative, challenging environment in which skills can be developed and enhanced.

“The IT section of the company stops being merely an enabling mechanism. It becomes instead a service provider and potential profit generator with a vested interest in growing the business, which is a win-win situation across the whole group. Because there is no middleman, costs are reduced and margins are good,“ adds Wills.

The benefits for the subsidiaries, divisions or branches are also considerable, according to Wills. The ASP takes IT functions — and all of the attendant variable costs such as database maintenance and support — out of the subsidiary, which instead pays a set monthly fee per user.

“This is a better value proposition for the subsidiary than buying, administering and supporting a full IT section. All the subsidiary needs is a dumb terminal, keyboard and monitor for each user. The IT needs are therefore simplified and the subsidiary can really focus on getting on with its core business.“

Wills adds that the overall concept is conducive to sharing knowledge, which benefits the entire group. “If one of the subsidiaries comes across a good complementary utility, it is easy to share that tool across the group. Similarly, third-party products that integrate into ACCPAC can also be shared, again contributing to streamlining and standardisation, saving time and money.“

Issued by: Thomas Molete Communications

Softline Lorge

Established in 1986, Softline Lorge has become the undisputed leader in ACCPAC accounting software and business solutions in Africa. Over the years, Softline Lorge`s consistent expertise in the implementation, development, servicing and support of ACCPAC systems as well as the design and application of innovative solutions that provide strategic and competitive advantage, has earned it an enviable reputation in both the public and private sectors.

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