1. SITA Today, SITA Tomorrow, SITA to the Future “Unleashing Entrepreneurship through Technology” SITA National SMME Road-Show 2011

2. Welcome Address “Unleashing Entrepreneurship in Technology” 2

3. Agenda  Expectations of the Road-show  SITA the organisation  SITA`s Strategic Intent towards SMME’s  SMME development strategy  Opportunities in SITA  Analysis of SITA spending on BEE/SMME for Quarter 2, 2011  Conclusion 3

4. To raise awareness about SITA’s role and programme to promote SMMEs in all the provinces To share the SITA SMME Development Strategy To foster relations with emerging and established SMMEs within the ICT sector To encourage participation by SMMEs in SITA’s procurement as part of stimulating economic development for all To support the creation of special interest groups on ICT matters to facilitate better engagement in the future Expectations of the Road-Show

5. SITA the Organisation.... 5 “Unleashing Entrepreneurship in Technology”

6. State Information Technology Agency (SITA) SITA is committed to leveraging Information Technology (IT) as a strategic resource for government, managing the IT procurement and delivery process to ensure that the Government gets value for money, and using IT to support the delivery of e-Government services to all citizens SITA Mandate The mandate of SITA as spelled out in the SITA Act is: a)to improve service delivery to the public through the provision of information technology, information systems and related services in a maintained information systems security environment to departments and public bodies; and b)to promote the efficiency of departments and public bodies through the use of information technology 6

7. SITA’s Contribution to Government’s Priorities 7 Re-engineering of the business process of government through the development and implementation of information systems that support the modernization of the public service such as the IFMS Facilitate citizen convenience by enable the delivery of e-Government services through the development and implementation of solutions that are govt –to- citizen (G2C) and govt-to-business (G2B) oriented. Ensure security of government data assets through the maintenance of a secure environment wherein govt information systems operate, set standards for govt information systems security and certify compliance of goods and services with those standards. Facilitate interoperability of government systems by ensuring that govt information systems can interconnect and exchange data by setting standards for interoperability and certify goods and services for compliance with those standards. Reduction of duplication of government systems through a dedicated programme to converge the existing duplicated systems and prevent the emergence of divergent systems to ensure integrated planning, efficiency and lower the cost of govt business

8. Mandatory Services 8 Private Telecoms Network (Act, Sec 7(1)(a)(i)) Transversal Systems (Act, Sec 7(1)(a)(ii)) Data Processing ( Act, Sec 7(1)(a)(iii)) Information System Security (Act, Sec 6(a)) Disaster Recovery Plan (Regulation, Sec 4.1.2) Procurement (Act, Sec 7(3)) Standards (Interoperability & Security) (Act, Sec 7(6)(a)(i),(ii)) Certify against Standards (Act, Sec 7(6)(b)) IS Convergence Strategy (Regulation, Sec 4.1.1 (a)) Information System Inventory (Regulation, Sec 4.6) Research Plan (Regulation, Sec 4.4.1)

9. SITA Service Portfolio 9 NB: SITA also procures non IT related services for internal consumption

10. SITA Top Structure 10 Minister of Public Service and Administration Mr Roy Padayachee Board of Directors Mrs F Potgieter Gqubule (act) Chief Executive Officer Mr Blake Mosley-Lefatola Chief Operations Officer Ms Khumbudzo Ntshavheni Finance Corporate Services SCM Govt Solutions & Standards ICT Service Delivery Company Secretary Internal Audit

11. SITA`s Strategic Intent towards SMME development …. Public-private risk & reward sharing in the acquisition of ICT goods and services (Presidential Review Commission) 11 “Unleashing Entrepreneurship in Technology”

12. SITA’s Turnaround 12 The Turnaround Strategy (TAS) is a 3 year programme to reposition SITA towards achieving its founding objectives of: o Enabling integrated planning by government through the inter- operability of government ICT systems. o Facilitating and developing e-governance that builds the capability of the state, including improving public sector efficiency and ensure citizen-convenience. o Driving economies of scale in the acquisition of ICT goods and services, and reduce the duplication of government ICT systems. o Ensuring security of government data assets, Thus building SITA’s capacity as a Prime System Integrator (PSI) for government

13. Seven outcomes of Turnaround 13 No. SITA Strategic Outcomes (2010-2014) 01 Quality ICT service delivery to the public sector O2 Proficient lead agency in the public sector ICT 03 Integrated public sector ICT Supply Chain Management (SCM) O4 Competitive pricing and financial sustainability 05 Effective ICT Regulator 06 Effective Governance and Monitoring 07 Employer of choice

14. Integrating SITA’s TAS and the development of an indigenous IT sector Our strategic intent towards SMME’s is to:  Transform the IT industry and create meaningful opportunities which result in industry growth (indigenous IT industry)  Creating an enabling environment to support Economic Transformation through ICT  Creating a new Procurement ethos reconfirming the principles of fairness, equity, transparency, integrity and competitiveness  Increase participation by SMME’s focusing on Black IT suppliers at both national and provincial level  To leverage the competiveness of IT Black Owned Enterprises through provision of appropriate support measures (i.e. Supplier development initiatives)  Ensure that SITA provides an oversight capability to monitor development within the industry 14

15. SITA`s SMME Development Strategy…. 15 “Unleashing Entrepreneurship in Technology”

16. Challenges faced by SMME These are some of the challenges faced by SMME’s according to an article published in the African Journal of Business Management (2010) as well as through discussions with SMME’s  Lack of access to finance – very complex projects with high financial risk are barriers to entry for SMME’s  Inadequate demand – cyclical demand for services (complex vs simple projects; high integration of services) negatively impacting sustainability of SMME’s  High competition within the industry – highly competitive bids issued tend to favor those business with more financial muscle and capabilities and spread (national vs provincial) 16

17. Challenges faced by SMME (cont…)  Insufficient experience relevant to a new opportunity – the inability to have the necessary core skills within the industry  Partnerships – ability to partner with established OEM’s for skills transfer and growth opportunities  Localized services – regional tender’s for Local Economic (provinces)  Regulatory constraints – challenges created by the Treasury regulations 17

18. Programme 2020  Legal Framework  PFMA  Skills development Act  BBBEE framework  Preferential Procurement Policy Framework Act  Government commitment  Infrastructure expansion programmes  Job creation programmes  Fiscal Budget allocation  Entrepreneurial initiatives 18

19. SITA SMME Development Strategy Defend SMME’s by supporting existing SMME; locking in opportunities for growth and collaborating with financial institutions to support current SMME’s for new projects Develop SMME’s for new markets/trends by skilling for the future (e.g. Cloud, intelligent systems etc) and recognizing excellence Grow SMME’s by enabling new entrants; introduce new opportunities for growth and reduce barriers to entry 1 2 3

20. Aspects within SITA’s SMME Development strategy Registration on SITA database Set aside’s Fulfillment Partner’s Local Economic Empowerment SMME/ Black ICT supplier Lekgotla / Forum Grow Improved invoicing and payment terms for SMME Supplier database (SMME) Set aside’s Fulfillment partner’s Defend Training Incubation / ICT Academy SMME Awards/ recognitions SMME Expo (network opportunity) Supplier Relationship management Develop 20

21. Opportunities in SITA…. 21 “Unleashing Entrepreneurship in Technology”

22. Potential projects for SMME future Participation Contract Number Duration period Date of ExpiryScope of services 1533 Years30 June 2012 (extended) Provision, installing, maintaining and support of X64 (X86) Servers (Tower, Rack and Blade), Storage (DAS, NAS, SAN), Server Racks and UPS 2853 Years Month to month (extended) Procurement of Information Technology and provision of seat management services i.e. deskop,laptop etc (Lease) 285/13 Years Month to month (extended) Procurement of Information Technology and provision of seat management services i.e. deskop,laptop etc (outright purchase) 4313 Years 30-Jun-12 Provision of Audiovisual Communications Technologies, Services and Solutions for the Department of Public Service and Administration. 5703 Years30 May 2012 (extended) Acquisition of IT Services

23. Potential projects for SMME future Participation Contract Number Duration period Date of ExpiryScope of services 7703 Years31 October 2013 Hardware maintenance and selected software support on WAN and LAN devices. 7683 Years 31 July 2013 Maintenance of switching centre facilities infrastructure for SITA and clients. 7763 Years31 October 2013 Provision of Advisory service planning, design, supply, installation, commissioning, project management and maintenance of network cabling and associated services. 7833 Years31 October 2013 Supply, design and installation of network equipment 7901 Years30 June 2012 LAN & Base Lining, Design, Integration, Supply, Installation, Commissioning & Maintenance of Network (DOD)

24. Additional info  SITA makes use of refreshes to enable new participants to partake in SITA’s preferred list contracts  SITA also issues once off tender’s  Tender’s are notified in the Government gazette (www.gov.za) and published on the SITA website (www.sita.co.za)  SITA provincial offices available for additional support and enquiry  Tender’s published for R200 non refundable  Procurement in SITA guideline (handout to be issued in this session) 24

25. Registration on SITA Database  SITA will only do business with suppliers registered on the SITA database. Supplier registration siteSupplier registration site  Supplier must ensure that information on the database is correct i.e. contact details, Tax Clearance Certificate, commodity, provincial offices, etc,  Registered suppliers must update their information on line i.e. contact details, commodity, provincial offices, BEE status etc,  The Original Tax Clearance Certificate must be submitted before the expiry date to SITA (SCM)  Implementation of ERP all RFQ's and Tenders/bids will be electronic  Open BIDS will still be published on the WEB and GOV Bulleting 25

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27. SITA’s BEE procurement spend – statistics…. 27 “Unleashing Entrepreneurship in Technology”

28. In conclusion....Our Commitment to YOU  SITA is committed to enacting on its SMME Development Strategy and pursuing all that the strategy intends to achieve  SITA is committed to engaging with SMME’s and creating opportunities for growth through our process to procure in SITA  SITA is committed to make available its own resources to support SMME Development (e.g. SITA’s ICT Academy)  SITA is committed to the fostering and nurturing of the Indigenous ICT Sector in a responsible manner for all to benefit  SITA is committed to engaging through our Industry Engagement and Partnership Strategy to support an integrated and transformational environment for SMME Development 28