1. State IT Agency Mandate, Successes, Challenges, and Strategic Directionto
Parliamentary Portfolio Committee on Telecommunication and Postal Services

2. SITA’s Legislative Mandate & Overview
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 to promote the efficiency of departments and public bodies through the use of information technology (SITA Act, 1998).
Act means “SITA Act 38 of 2002”; Regulation means “SITA General Regulations R.902 of 2005”.

3. New Macro Structure CEO Minister: Telecommunications & Postal Service
SITA BOARD
Company Secretary
Procurement (Subsidiary)
ICT Security (Subsidiary)
CEO
Internal Audit
Executive Support
CORPORATE SERVICE & GOVERNANCE
Deputy CEO
ICT DELIVERY
Deputy CEO
Corporate Service
Executive: Corporate Services
Finance
Chief Finance Officer
Risk Management
Chief Risk Officer
Technology
Management
Chief Technology Officer
ICT Service Delivery
Executive: Service Delivery
Customer Relations
Executive: Customer Relations
Systems
Executive: Systems

4. SITA EE Stats per Division
Note: Patterson Job grades identifies the level of the job on the organization hierarchy

5. SITA Highlights (1 of 2)
~ 7000 public service outlets connected on a government secure network
Secure Hosting of Government Systems that ensure transactions on time
Provide secure Citizen Identity verification to Financial sector ~
IT Help Desk calls per year
~ 1400 Customer Service Agreements (incl SLA Annexes)
~ Senior Certificates processed annually

6. Primary contributor to the GITOC Government Wide ICT Strategy
SITA Highlights (2 of 2)
Developed Minimum Interoperability Standards MIOS v5 to enable data exchange between government systems.
Primary contributor to the GITOC Government Wide ICT Strategy
2000 Young South Africans benefiting in SITA’s learnerships, internships and bursaries
Bridging the digital divide with 15 high-end equipped ICT laboratories in Schools in primarily rural and peri-urban areas
Managing and Hosting the Presidential Hotline to promote Citizen participation on improving public service delivery
Techno-Girl girls in job shadowing; 283 studying at Higher Education; 289 employed

7. Procurement challenges
Pain points
Root Causes
Long delivery timeframes to complete procurement process
Limited staff capacity and capability.
Limited of transaction progress visibility.
Lack of customer-centric approach.
Locked into contracts after expiry
Lack of effective contract management – process inefficiently conducted manually.
Poorly defined specifications and evaluation criteria.
Limited supply market intelligence
Tenders cancelled
Poor communication between SITA and customers
Lack of customer-centric approach
Lack of formal periodic progress reporting to customers.
Poor stakeholders alignment of the process
High prices for goods/services procured
Limited ability to leverage economies of scale.
Absence of commodity management approach
Limited knowledge of supplier market.
Lack of segmentation of the vendor master
Absence of dedicated capability.
Limited development for SMME growth
SOURCE: SITA data; client interviews

8. Procurement Strategic intervention
Procurement controls
Pain points
Long delivery timeframes to complete procurement process
Improve capability and capacity through training and recruitment.
Ring-fence Procurement function through a new business unit.
Introduce automated transaction tracking system.
Implementing effective contract management framework supported by an automated contract management system.
Locked into contracts after expiry
Establish independent specifications review committee.
Build supply market intelligence capacity to provide market insight.
Build ICT competency within Procurement.
Tenders cancelled
Poor communication between SITA and customers
Introduce formal periodic progress report to customers i.e. weekly. Including introducing automated workflow system.
High prices for goods/services procured
Introduce commodity approach to leverage economies of scale to drive price reduction. Introduce fact based negotiations.
Implement continuous security vetting and integrity checks.
Declaration of interest per transaction including probity checks including lifestyle audits.
Vulnerability to Fraud and Corruption
Limited development for
SMME growth
Build supplier market capacity.
Introduce segmentation of the vendor master.
Introduce a dedicated capability and SMME help desk.
SOURCE: SITA data; client interviews

9. ICT service delivery challenges
Pain points
Root Causes 1
Digital Government
No defined E Government strategy, lack of robust infrastructure, limited bandwidth to support transaction intensive applications. 2
Security controls are not integrated to include physical security data and ICT i.e. national key point expectation.
Have not updated controls to address rise in Cybersecurity threats.
Insufficient disaster recovery
Security 3
Transversal capabilities
End-of-life technologies ie. mainframe based.
Limited system maintenance skills.
Insufficient capabilities to deliver on new customer requirements. 4
Managed Infrastructure
25 Years old data centres - prone to breakage.
High Power Consumption.
Poor investment on hosting technologies.
No DR site.
Network
Low last mile bandwidth
Poor rural coverage
Fragmentation and duplication of networks

10. ICT service delivery strategic intervention
Service Delivery Controls
Pain points
Partnership with Government Agencies.
Develop strategic framework for implementation of E-Government (standards costs, equipment, local content , budget etc)
Adopt a top-down approach on e-Government initiatives and strategic direction (e-Government as an immediate priority). 1
Digital Government 2
Security
Ring-fence security function in separate business unit.
Implement integrated security system (Physical, ICT, people)
Partner with SSA for regular review of SITA’s security.
Modernise the aging Government Wide Transversal systems (BAS, PERSAL, LOGIS) i.e. Hosting the new IFMS.
Integrate and enhance Government sector transversal solutions to improve interoperability amongst cluster systems and increase productivity of government service delivery machinery. 3
Transversal capabilities 4
Managed Infrastructure
Explore strategic partnerships with State agencies on DR sites.
Upgrade and modernise existing data centres ,cloud computing and virtualisation , UPS.
Consolidate and upgrade Government shared ICT infrastructure.
Network
Extend footprint and upgrade existing Government network in line with SA connect Broadband targets.
Enhance the security and reliability of the Government network.
Partner with Telkom and BBI in improving BB services.

11. Focus on E-Government
Government Goal: Make at least 70% of public facing services online accessible to citizens by 2016.
Strategic Direction Approach
Partnership with Government Agencies.
Develop strategic framework for implementation of E- Government (standards costs, equipment, local content, budget etc.).
Adopt a top-down approach on e-Government initiatives and strategic direction (e- Government as an immediate priority).

12. SITA’s transformation journey will be implemented through 23 initiatives across 4 key categories
Procure-ment
Establish procurement Subsidiary
Implement contract tracking & management system
Implement new approach to technical specifications
Launch new procurement process
Establish contract model
Launch On-line Buying
Introduce new organisation model
Revise SITA’s procurement policies A 1 2 3 4 5 6 7 8
IT Service Portfolio B
Consolidate & modernise data centres
Upgrade bandwidth & network
Design and implement security system
New IT Service Delivery Model
System Integration & e-GOV
Build internal capabilities
Design and implement retained organisation 9 10 11 12 13 14
SITA
Business Enablers
Create transparency on cost
Integrate and automate finance and procurement process
Develop and implement new customer engagement model
Recruit top talent to SITA
PMO Strategy Institutionalization D 19 20 21 22 23
Organisa- tional Health C
Create a customer centric organisation
Reward and recognise exceptional performance
Build an open and trusting culture
Empower SITAzens to fully leverage their capabilities 15 16 17 18

13. Summary of Auditors General, 2013/14
Unqualified audit report 1
Reported issues 2
2 Issues relating to the reliability of reported performance information
7 Issues relating to non-compliance with procurement information
2 Other instances of non-compliance (material audit adjustments, irregular expenditure) 3
Audit Findings
Interventions
13 Finance
30 Supply Chain Management
6 Corporate Services
3 Company Secretary
2 Performance Management
1 Customer Relation Management
Action plan for each findings has been developed and to be managed from the CFO office.
Dashboard to facilitate monitoring has been developed to be updated monthly.

14. Financial Sustainability Planning

15. Capital Expenditure

16. Current Status (in response to media coverage)
Financial Health
While there is room for improvement, SITA’s current financial position is nowhere near collapse
As part of our strategy implementation programme all financial systems, processes and controls are being reviewed to achieve more efficient financial management, with improved financial growth and sustainability
Governance
SITA’s leadership team is one hundred percent committed to the highest standards of corporate governance and ethical behaviour and does not hesitate to confront breaches, dealing with them decisively and swiftly
The irregularities and malpractices reported on in the said media reports were presented as an exposé which caught the leadership off guard, they were actually part of the findings of an internal investigations commissioned by the SITA leadership team with the precise objective to uncover any potential irregularities
Procurement
Our newly adopted strategy implementation programme is currently reviewing and refining the procurement system to ensure high levels of efficiency with quick turn-around times and optimisation of economies of scale
Service Delivery
Our strategy is geared towards reviewing and enhancing every aspect of our operations, ensuring that SITA becomes completely customer centric, being fully equipped and capable to deliver top-end services to our clients
Staff Related Matters
SITA has in the last number of years, unfortunately, been subjected to large scale staff and skills losses
The strategy implementation programme has sufficient focus on our efforts to build organisational capabilities to enable SITA to deliver on its mandate while becoming an employer of choice within the ICT industry

17. Thank You Questions