ITWeb TV: IQbusiness balances acquisitions, offshore growth, AI caution

IQbusiness is focusing acquisitions as a vital part of its growth strategy. The consulting and technology services company seeks fintech firms with unique intellectual property that can be scaled through its existing customer base. CEO Rob Godlonton explained that the acquisition strategy aims to bring specialized capabilities into the group rather than pursuing growth for its own sake.

They acquired Silversoft Group earlier this year to enhance enterprise resource planning and professional services automation capabilities. Godlonton highlighted that Silversoft enables them to scale up through "joiner acquisitions" and they plan to do more of these to build out their security data capability. The company's strategy also reflects its differentiation through the combination of consulting expertise and technology capabilities following its acquisition by Reunert Group in 2023.

They view their client base as an important aspect of potential acquisition targets, particularly businesses with technology that can be deployed more broadly. Godlonton mentioned that IQbusiness is already engaging a prospective partner and looks forward to closing the deal in the next few months. The company operates in financial services and has a unique platform, which they plan to take into all the financial services companies in their portfolio.

They are particularly interested in organizations that deliver unique IP-based solutions to clients. While South Africa remains their primary growth market, they also aim to take capabilities developed locally into international markets. Their global capability centre in Cape Town supports a large international business school, and they have operations serving the UK and Middle East.

This international strategy is being pursued alongside domestic expansion, rather than as a replacement for the South African market. Godlonton warned against organizations rushing to use generative AI without a clear business purpose, describing it as "AI vomit." He emphasized that while AI adoption is accelerating, traditional digital transformation fundamentals, such as infrastructure, cloud platforms, data, and digital processes, remain crucial for organizations to make effective use of AI capabilities.