The document discusses the challenges facing the call center industry and traditional IT hardware sourcing methods. It proposes two paradigm shifts: (1) moving from cash purchases to pay-per-use models to preserve capital and match costs with revenue, and (2) classifying users as power or general users in order to optimize spending. This approach saved Discovery Health over R10 million in 3 years by supplying over 3,000 machines. Adopting this alternative smart way of procuring IT hardware through pay-per-use and fit-for-purpose user classifications can provide benefits like substantial cost savings without compromising performance.

1. Qrent
The Alternative, Smart Way
DJ Kumbula
Group CEO

2. Current Challenges Facing the Industry
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Lack of capital to expand or start up;
Dwindling Fees and margins from customers;
Shorter contract terms;
Cancellation of contracts
Idle capacity of equipment;
High per seat costs;
Mismatch between revenue/fees and costs/investment;
Highly competitive environment;
High staff turnover;
Technology is getting expensive;
Lack of custom made solutions for the specifics of the call center industry.
Lack of capital to expand or start up;
Dwindling Fees and margins;

3. How you currently source IT hardware
You buy Cash and Traditionally, why ?
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Lack of custom made solutions from suppliers;
That’s what you have always done;
Subjective personal preference;
Cash/Funding is readily available;
Donate;
Global supplier agreements;
Sweating Strategy.

4. Disadvantages of Buying Cash
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Tying up Capital;
Using cash slows down company growth dramatically;
Mismatch between revenue and cash spent;
Contracts cancelled or suspended, you sit with idle capacity;
Can’t bid on short term campaigns/contracts because of cash
outlay;
Out of warranty issues, hidden capital costs;
End of term disposal;
Trying to be an IT company, causing downtime and lost income;
Being out priced by competitors because your costs are too high.

5. Paradigm Shift 1
Cash Purchase vs Pay-For-Use

6. The Right Way : Paradigm Shift 1
Current Challenge
Our Solution
Tying up of Capital
Preserve Capital by paying
monthly
Mismatch between revenue
and spend
By paying small amounts
monthly you match your
income to expenses
Funding substantial business,
slows down cash flow
Have extra cash in the bank to
expand, due to monthly rental
Cancelled contracts
Scale down, hand back
equipment
Short term contracts,
expensive
Access equipment from 1
month to 36 months
Out of warranty issues and
costs
Take away hidden costs of
spares and labour
Out priced by competitors due Small monthly premiums
to high setup costs
make you more competitive

7. The Right Way : Paradigm Shift 1
continued
Current Challenge
Our Solution
Trying to be an IT company
Maintenance and upkeep
headache is ours
Disposal of IT assets
We remove non-core
equipment and take away the
headache of eWaste/Carbon
footprint disposal
Balance Sheet heavy, eroding
shareholders wealth
Off balance sheet financing
Ownership Challenges,
focusing on core business
Pay-per-Use
Cost per seat

8. Now what?
Decision 1
Choose Pay-For-Use!!!

9. Paradigm Shift 2
Classify your users into “Power and Non-Power Users”
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What percentage of staff are average/medium and high end users?
Do all your users need the state of the art equipment?
What do the users actually use the machines for on a daily basis?
Do they all need to use the full application suites?
Forgetting your buying and replacement policy, which users need a regular
refresh every 3 years?
• What informs our buying decision?

10. Power vs General Users
 Would you drive a Rolls Royce around on the golf course?
You could, but it’s a little excessive
 Similarly why provide a high end device to a general user, when fit for purpose IT
hardware, can save substantial costs without compromising on speed, reliability and
efficiency
 We say: Match capacity with functionality

11. HEALTH: Discovery Health
Challenge
Breaking into the market
and convincing decision
makers at a HIGH END
COMPANY that Qrent was
a viable and reliable option
Action
Qrent successfully
completed a deal with
Discovery Health – and
subsequently supplied
equipment in excess of
3,000 machines
Results
Discovery SA has saved
R10mil in the last 3 years
adopting the Alternative
Smart Way.
The Discovery Health
partnership in SA has
resulted in Qrent’s first UK
client – PruHealth.

12. Paradigm Shift 2 Impact
“Scenario : Fit for Purpose Approach”
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Traditional Method
1000 users @ R7,500 per PC = R7,5million
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Alternative Method
Profile your users, including applications
 20% Power Users @ R7,500 = R1,5million
 80% Non-power Users @ R4,000= R3,2million
Total Cost = R4,7million
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 SAVING = R2,8million (35% +)
• 200 Users use Innovent at prime less %
 Vendor warranties and support
• 800 Users use Qrent at reduced monthly rates
 Warranties, insurance, tier one brands, SLA

13. Summary Benefits
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InnoVent – Traditional
Cost effective funding
Stronger Cash Flow(Don’t tie up your cash)
Maintain relationships with existing suppliers
Negotiate your pricing up front
Off balance sheet
Qrent – Alternative
Priced at 50% of traditional
Conserve Cash
No credit line impact
Short terms/ flexibility
 1 day to 36 months
Scale up and down
On demand availability
Hassle free : includes warranties, insurance, spare units, SLA’s
Tier one brands, standardise e
Onvironment

14. Conclusion
Many organisations are considering innovative ways of increasing margins.
IT departments are starting to understand the needs of their users. By classifying these
into power and general users they can successfully take advantage of the Qrent
Alternative, Smart Way. Adopting this model has provided the benefits of first mover
advantage – saving substantial costs without compromising performance.
It is clear that every organisation ought to be thinking this way.

15. Contact Details
Johannesburg
: +27 11 791-0645
svandermerwe@qrent.co.za
sgovender@qrent.co.za
Cape Town
: +27 21 020-0104
jmeyer@innovent.co.za
Durban
: +27 31 830-5220
dmclarty@innovent.co.za
Other Offices
Zimbabwe
Zambia
Tanzania
United Kingdom

16. Next Steps
Talk to us – we are outside!