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Al Osais Group Switches to SAP Core ERP Solution
Sunday 25 March 2007, by : Alex Malouf

SAP is still behind Oracle and Baan in the Kingdom's ERP countdown.

Al Osais International Holding Company, the Dammam-based construction and utilities corporation, has confirmed that it will switch its enterprise resource planning (ERP) software solution to SAP, beginning with its construction company, Al Osais Contracting Company.

According to the press release from SAP Arabia, Al Osais believes that by implementing SAP’s Engineering and Construction application, it will realize immediate benefits in the way it controls projects and integrates with customers despite the fact that surveys constantly cite a minimum 6 to 12 month waiting period before any return on investment is achieved. Nearly 37% of respondents at 215 large and midsize companies using ERP applications from J.D. Edwards, Oracle, PeopleSoft, or SAP that Peerstone Research surveyed two years back said they have not realized any real returns on their ERP deployments because they're too busy integrating the ones they already own.

“We are a large group with large customers across the Kingdom, so we must be very organized to stay competitive,” said Tareq Al Moraisel, Board Member, Al Osais International Holding Company.

“SAP’s engineering and construction application has significantly improved our ability to control projects and facilitate integration with our customers. And we also believe that SAP’s product roadmap is more stable than their major competitor, which is also important for a growing group like ours when taking a decision to invest,” added the PR statement. The announcement does not, however, make clear whether or not the SAP application has already been installed.

Al Osais Contracting is involved in several different types of building construction, both commercial and residential. Their services include site development, provision of infrastructure and utilities, to include structural steel works, marine works, plant infrastructural civil works, surveying and drafting services.

Essam Enany, president, SAP Arabia said: “The Al Osais implementation of SAP’s engineering and construction application is a first for the Kingdom; no other organization is running it yet. But we think they will soon when they hear about the immediate benefits that it is bringing to Al Osais Contracting.”

With just over 20 deployments in Saudi Arabia, SAP Arabia is still behind market leaders Oracle and Baan. The exclusive representative for SAP AG has a number of high name clients under its belt, including Saudi Electricity Company, and Saudi Cable Company. SAP’s largest customers, Aramco and SABIC, both deal directly with SAP AG based in Germany.

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