services to government departments...

1

SERVICES TO GOVERNMENT DEPARTMENTS

MARCH 07 2017

BACKGROUND ON MANDATE

2 SITA SOC Ltd

3 SITA SOC Ltd

ICT Mandates – A chronological overview

1997

MPSA: Info

Management E-Government

Public Service

Act 103/1994

1998

Notion for

“Lead Agency” to coordinate all IMST

PRC on Public

Service (Chap 6)

2000

Formation of GITO Council

Cabinet Memo

38A

1999

Incorporation of SITA under DPSA;

MAY services

SITA Act (88/1998)

2001

ICT House of Value (e-Gov Value Prop)

e-Gov Direction

e-Government IT

Policy Framework

2002

Must and May

mandate. Departments

must procure via SITA

SITA Amendment Act (38/2002)

2003

Clarify ICT Roles in Public Sector:

SITA, DPSA, GCIO, GITO, GITOC

Machinery of Government

2005

Operating mode

Engagement mode (BA/SLA)

Procurement.

SITA General Regulations

2014

SITA transfer to DTPS

Proclamation 47 2014

2002

DTPS (prev DOC) owns National e-Service Strategy

DPSA e-Gov

ECT Act 25/2002

The detailed report is provided in Annexure A.

4 SITA SOC Ltd

ICT Mandated Responsibility as per the legislation can be summary

ICT Function/Focus Area SITA DPSA/GCIO DTPS GITO/C

Policy, Norms, Regulations C R R C

Strategy (Government Wide) R C R R

Architecture, Stds (Interop, Security) R R C

Security services R R R

Research, Advisory R R RC

Project coordination and management C R R

Procurement, Industry Development R RC RC RC

Service Management services R C

Network services R C C C

Transversal systems (Dev/Maint) R C C

Departmental system (Dev/Maint) R C

Hosting, Facility and DR service R C

End-User Computing services R C

Application Training/Support R R C

Indicates areas for coordination and role clarity

Cro

ss C

utt

ing

D

om

ain

Sp

ec

ific

R=Responsible (Lead)

C=Consult

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SITA’s services as intended

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Past attempts to resolve core issues have

been plagued by frequent leadership

changes and overlapping solutions

7 SITA SOC Ltd

South African government spends more on IT

but effectiveness has not kept pace with

other countries

Global eGovernment ranking

South African Government IT Spent

Billions, Rand, 2013/14 – 2015/16

16

16.5

17

17.5

18

18.5

19

19.5

2013/14 2014/15 2015/16

17.1

17.5

19.2

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Demand for emerging technologies is

expected to fuel overall increase in spend

on IT services in coming years

Description What our customers’ CIOs are saying

SITA’s strategic importance to South Africa and ability to drive value will continue to increase as emerging technologies are adopted

Infrastructure as a Service (IAAS)

“I do not ever want to have a Data Centre Call out in the middle of the night ever again”

“A Departmental CIO should focus on providing business services – not running infrastructure”

“In my view, we should not have a single non-SITA Data Centre”

▪ SITA provides processing, storage, net-works and other computing resources

▪ customers can use them to run any software, including operating systems and operations

▪ customers do not have to manage or control

the underlying physical infrastructure

Bandwidth explosion

“If we lifted the bandwidth constraints, our usage would increase 10-fold overnight”

“Giving citizens access to the internet is key

to South Africa’s economic growth”

▪ Provide high-speed internet connections to all citizens and businesses

▪ Create an enabling environment for the use of applications, which require network capacity

eGovernment services for citizens

“We want every citizen in our province to have a mail account by 2030”

“In future, we want a central help desk to track service delivery to every citizen”

“We plan to roll out PCs to every school – every learner should have their own user profile”

▪ Uses digital tools and systems to provide better public services to citizens and businesses and improve communication with employees and departments / SOEs

▪ eGovernment allows improved operations and optimised service delivery

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ICT readiness and global economic

competitiveness are closely linked

2014 2012 2015

Developed economies Emerging and developing economies South Africa

1 Global Competitiveness Index, sourced from World Economic Forum Report, is based on 12 pillars including infrastructure, education, labour market, etc.

2 The IDI , sourced from the ITU report: "Measuring the Information Society

10 SITA SOC Ltd

Demand for emerging technologies is

expected to fuel overall increase in spend

on IT services in coming years

Description What our customers’ CIOs are saying

SITA’s strategic importance to South Africa and ability to drive value will continue to increase as emerging technologies are adopted

Infrastructure as a Service (IAAS)

“I do not ever want to have a Data Centre Call out in the middle of the night ever again”

“A Departmental CIO should focus on providing business services – not running infrastructure”

“In my view, we should not have a single non-SITA Data Centre”

▪ SITA provides processing, storage, net-works and other computing resources

▪ customers can use them to run any software, including operating systems and operations

▪ customers do not have to manage or control

the underlying physical infrastructure

Bandwidth explosion

“If we lifted the bandwidth constraints, our usage would increase 10-fold overnight”

“Giving citizens access to the internet is key

to South Africa’s economic growth”

▪ Provide high-speed internet connections to all citizens and businesses

▪ Create an enabling environment for the use of applications, which require network capacity

eGovernment services for citizens

“We want every citizen in our province to have a mail account by 2030”

“In future, we want a central help desk to track service delivery to every citizen”

“We plan to roll out PCs to every school – every learner should have their own user profile”

▪ Uses digital tools and systems to provide better public services to citizens and businesses and improve communication with employees and departments / SOEs

▪ eGovernment allows improved operations and optimised service delivery

11 SITA SOC Ltd

Yet there are still key barriers frustrating SITA from reaching its full potential

Key issues Description Customer and employee quotes

Customers do not

trust SITA to deliver

▪ Many customers have or are considering asking parliament for an exemption from

using SITA’s services ▪ Customer satisfaction score of ~35% with

all core elements below 40% ▪ Provincial and local departments

significantly more dissatisfied than national (30% vs. 43%)

"Eextremely frustrating for my tender to be delayed 2 weeks because the tender committee

did not have quorum"

“It is inevitable that our department will eventually stop using SITA”

Demoralised internal workforce

▪ Overall culture score over 30 – ranking in the global bottom quartile

▪ Bottom quartile ranking persists across all 9 key dimensions

▪ Biggest gaps are Motivation (14%) and Innovation and Learning (18%)

“Turnaround & transformation messed up a company that used to be good at what it does – now

there is no growth for employees; we are demotivated”

Processes and operational measures lag

industry standard

▪ Only 4 out of 12 best practices followed in major transversal programmes (e.g., IFMS)

▪ Infrastructure performance shows gap to benchmark (e.g., mainframe utilisation ~50% vs. 70-75%)

▪ Procurement processes takes significantly

longer than required

“SITA should be advising departments on technology not departments advising SITA”

“We have been waiting for 10 years for IFMS"

PRODUCTS, SERVICES AND CUSTOMERS

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Not all Government IT is going through SITA

operations or SITA procurement…

17,182

4,887

12,295

17,545

3,936

13,609

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

28 4.3 11-22

Total ICT Spend ICT Spend on SITA Non-SITA

2013/2014

2014/2015

South African Government IT Spent

Billions, Rand, 2013/14 – 2014/15

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SITA should be able to impact ~90% of government spend through its IT and

procurement services

R3,341

R1,261 R407

R4,162

R1,885

R8

R11,064

R134

R2,996 R2,112

R5,242

R16,306

R876

R17,182

R3,372

R1,469 R371

R4,119

R2,414

R30

R11,773

R106

R2,757 R2,010

R4,872

R16,646

R899

R17,545

R0.0

R2,000.0

R4,000.0

R6,000.0

R8,000.0

R10,000.0

R12,000.0

R14,000.0

R16,000.0

R18,000.0

R20,000.0

Base (R bn) GOVT 2013/2014 GOVT 2014/2015

Breakdown of Government IT Spent

Billions, Rand, 2013/14 – 2014/15

In-scope for SITA

Out of scope

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SITA currently offers end-to-end solutions across complete spectrum of IT services but overall ICT spend is highly concentrated

xxx

xxxx

xxxx

2013/14 YTD ICT on SITA (Rm)



Strategy and R&D

End user services

Servers, storage and mainframe

WAN

Application development &maintenance

Service desk

Architecture, standards & security

Training

Data Centre & Facilities

Fully managed desktop solutions including workstations, telephony (including VoIP), LAN and video-conferencing

End-to end hosting and operations for midrange

servers, storage and mainframe

Wide area network management and connectivity including dedicated VPN services

Solution design, development, deployment and maintenance services for both transversal and department specific applications

Single point of contact for logging and resolving ICT related requests and incidents as well as ad-hoc BPO call centre infrastructure

Enterprise architecture along with interoperability and security standards, full suite of high-end security solutions

Basic IT training for departments as well as 3rd party training development and management

Fully managed secure data centre environment with disaster recovery and business continuity measures

Suite of strategic advisory services to assist in IT strategy creation

1148 1195 1857

942 1069 1049

680 871 868

479 785 759

143 153 179

90 80 158

33 35 46

2 21 21

15 .5 5

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SITA currently offers end-to-end solutions across complete spectrum of IT services but overall ICT spend is highly concentrated

SOURCE: SITA Service Catalogue, ERP Projects (Nov 2016)

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Technology tower Germany UK US France Australia South Africa

Procurement

Cross-department application development

and maintenance

Standards and advisory

services

Infrastructure provisioning and operations

Training and end user support

Data management and interoperability

Systems architecture and security

Department-specific application development and maintenance

With a strong suggestion that focus should be more on cross-departmental application development and strategy, planning,

architecture, standards and advisory services.

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Supported by a well-thought through economic and value-proposition model

WACC: Stable market return Return_1: Early market efficiency return Return_2: Still inefficient; charges market efficiency rates but returns are too low for sustainability Return_3: Loss making return. Return_4: Target return; get a sustainable return that is lower than market return; market efficient with Tariff B but inefficient with Tariff E

Return Required

Tariff Charged

Return_1

Tariff B

Tariff A

WACC

Loss

making

Return_3

Tariff D

Tariff C

Return_4

Tariff E

Private Sector

Dividend

Return_2

19 SITA SOC Ltd

New Costing Model

The Sustainability Tariff parameter is based on:

Return on Infrastructure Investment; plus

Depreciation costs (in accordance with the estimated

remaining life of assets; plus

Expenditure elements (direct and overhead cost

elements)

Costing Model Guiding Principles

Transparency of the tariff platforms within SITA.

Tariff predictability for our client base.

Tariff stability for our client base in terms of

multi-year tariffs.

Affordability in terms of ranked service

offerings.

Non-discriminatory tariffs across tiers of the

service offering.

Cost reflective service delivery.

Achieving economies of scale for all ICT

procurement within the public sector.

Self sufficiency to aid in job creation and

enhanced training for SITA staff.

And costing tariff model

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For the national departments…

NoTop 10 National Department (Service

Consumption)

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Total Budgeted

Revenue (16/17)

% of

Total

Revenue

1 South African Police Service R 1 774 075 252 27.7%

2 Department of Defence R 778 181 366 12.2%

3 Department of Justice and

Constitutional Development R 314 376 888 4.9%

4 South African Social Security Agency R 174 653 793 2.7%

5 Department of Home Affairs R 151 141 315 2.4%

6 Department of Labour R 142 185 785 2.2%

7 Department of Correctional Sevices R 100 622 395 1.6%

8 National Treasury R 81 195 612 1.3%

9 Department of Higher Education and

Training R 64 919 159 1.0%

10 National Prosecuting Authority of

South Africa R 60 248 671 0.9%

3 641 600 237R 56.9%

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And provincial departments

NoTop 10 Provincial Departments (Service

Consumption)

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Total Budgeted

Revenue (16/17)

% of Total

Revenue

1 Western Cape: e-Innovation (ICT-I) R 271 914 407.66 4.3%

2 Gauteng: Department of e-Government R 187 004 126.83 2.9%

3 KwaZulu-Natal: Department of Health

Services

R 131 494 573.44 2.1%

4 Limpopo: Department of Health R 92 506 724.93 1.4%

5 KwaZulu-Natal: Department of Provincial

Treasury

R 57 836 584.49 0.9%

6 KwaZulu-Natal: Department of Education R 57 600 656.58 0.9%

7 KwaZulu-Natal: Department of Agriculture,

Environmental Affairs and Rural

R 56 514 981.06 0.9%

8 Mpumalanga: Provincial Treasury R 43 489 346.88 0.7%

9 Eastern Cape: Department of Education R 38 107 337.84 0.6%

10 Eastern Cape: Office of the Premier R 34 488 950.04 0.5%

970 957 689.75R 15.2%

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Procurement Services

Value proposition

We offer customers ICT procurement services that covers identification and selection of service providers, management of supplier performance as well as ongoing administration of the contracts ensuring: • Cost effective procurement of ICT products and services in a manner that is consistent with government procurement prescripts (including State Information Technology Agency Act 1998: Regulations), and aligned to business objectives. • Promotion of South African ICT industry, particularly Broad Base Black Economic Empowerment.

Services

• Bid and Contract Management Assess pre-requisite documentation Prepare Solicitation (bid) Package Select Supplier Adjudicate bid Establish Supplier Agreement Administered Contract

Key customers

Top 5 customers: • South African Police Service • Gauteng: Department of e-Government • Department of Justice and Constitutional Development • Western Cape: e-Innovation (ICT-I) • Department of Defence

Customer / Resource / Financial Performance

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Wide Area Network Services

Value proposition

We provide customers with an array of Virtual Private Network, Internet and Unified Messaging service packages, focused on effectively connecting government to improve service delivery.

Services

• Shared Virtual Private Network • Dedicated Virtual Private Network • Fully Outsourced Dedicated Virtual Private Network • Shared Internet Connectivity • Dedicated Internet Connectivity • Remote Access • Unified Messaging

Key customers

No of customers 2016/17: 182 (50.7% of total) Top 5 customers: • South African Police Service • Western Cape: e-Innovation (ICT-I) • Department of Home Affairs • Department of Labour • Department of Justice and Constitutional Development


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Hosting Services

Value proposition

We offer customers with an array of secure application hosting, web hosting, storage, backup and disaster recovery service packages to house, service and maintain government information.

Services

• Mainframe Hosting • Hosted Batch Printing • Midrange Hosting Disaster Recovery • Server Accommodation / Housing

Key customers

No of customers 2016/17: 190 (52.9% of total) Top 5 customers: • South African Police Service • Department of Defence • South African Social Security Agency • National Treasury • Department of Home Affairs


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End User Computing Services

Value proposition

We offer customers managed local end user capability through integrated management, control, operational support, monitoring and maintenance of the local area networks and end user devices.

Services

• LAN and Desktop Design and Planning Server Platform Desktops, Printers, Telephony / PABX Support Mobility and Backups Lifecycle, Collaboration and Messaging systems Corporate Systems e.g. office suites Application Support Information Systems Security LAN Networking, Cabling installation and maintenance Hardware Maintenance LAB services

Key customers

No of customers 2016/17: 81 (22.6% of total) Top 5 customers: • South African Police Service • Department of Defence • KwaZulu-Natal: Department of Health Services • KwaZulu-Natal: Department of Education • Department of Human Settlements


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Application Maintenance Services

Value proposition

We provide customers with integrated application functional support, technical support and maintenance services focused on service delivery aligned to business requirements.

Services

• Application Technical Support Corrective, Routine, Adaptive and Perfective Maintenance Data corrections System Optimisation Archiving • Application Functional Support System functionality assessment Requirement development and interface management Business process, Information and quality management Product and process quality assurance Data analysis ,Work monitoring and control Implementation support, Skills development Master Data & Asset Management and Cataloguing

Key customers

No of customers 2016/17: 96 (26.7% of total) Top 5 customers: • Department of Defence • South African Police Service • Department of Justice and Constitutional Development • South African Social Security Agency • Department of Basic Education


27 SITA SOC Ltd

Application Development Services

Value proposition

We design, develop and deploy solutions for customers ensuring that it is effectively transitioned into the business environment and delivers the intended business value, underpinned by international best practice frameworks and quality standards.

Services

• Application Design and Development Business requirement management process Business process modelling process Solution Analysis and Design process Solution Development Solution Testing Solution Integration

• Application Deployment Organisational Change Management Data Management Business Process Management Solution Management Learner , Technology and Quality Management

Key customers

No of customers 2016/17: 31 (8.6% of total) Top 5 customers: • Department of Defence • City of Johannesburg Metropolitan Municipality • KwaZulu-Natal: Department of Agriculture, Environmental Affairs and Rural Development • Department of Environmental Affairs • Department of Higher Education and Training


28 SITA SOC Ltd

Service Management Services

Value proposition

We offer service packages that provide customers with the capability to effectively monitoring, evaluate and continually improve services received from service providers using international best practice frameworks and quality standards.

Services

• Service Management Service Desk Remote Support Incident Management Problem Management Change / Release Management Service Monitoring Service Delivery

Key customers

No of customers 2016/17: 23 (6.4% of total) Top 5 customers: • Department of Defence • Western Cape: e-Innovation (ICT-I) • South African Police Service • North West: Department of Health • Department of Military Veterans


29 SITA SOC Ltd

Architecture, Standards and Specification

Services

Value proposition

We offer customers ICT Advisory services related to enterprise architecture, standards and specifications using internationally recognised best practice frameworks and quality standards.

Services

• IT Strategy Development • Enterprise Architecture • IT Governance • Independent ICT Advisory Applied Research • Project Management Advisory • ICT Plan Development

Key customers

No of customers 2016/17: 23 (6.4% of total) Top 5 customers: • Department of Defence • South African Police Service • Property Management Trading Entity(PMTE) • Department of Public Works • KwaZulu-Natal: Department of Transport


30 SITA SOC Ltd

Security Services

Value proposition

We assist customers to incorporate security into strategy, policy and solution lifecycle methodologies to support effective information security management practice embedment.

Services

• Security Strategy Development • Security Policy Development and Maintenance • Business Continuity Planning • Security Solution Maintenance and Support • Security Architecture Development and Maintenance • Disaster Recovery Planning • Risk Management

Key customers

No of customers 2016/17: 8 (2.2% of total) Top 5 customers: • South African Police Service • Department of Defence • Department of Public Works • Limpopo: Department of Agriculture • KwaZulu-Natal: Department of Co-operative Governance and Traditional Affairs


31 SITA SOC Ltd

Training Services

Value proposition

We offer customers all training requirements necessary to develop skills for any business processes and/or ICT systems.

Services

• Training Development and Facilitation (Solution and Applications) • Training Development and Facilitation • Training Facility Services

Key customers

No of customers 2016/17: 15 (4.2% of total) Top 5 customers: • Department of Defence • South African Social Security Agency • Department of Human Settlements • Department of Higher Education and Training • Department of Basic Education


32 SITA SOC Ltd

Business Processes Outsourcing Services

Value proposition

We offer Business Contact Centre service packages to customers with supporting processes and technology platforms aligned to provide services to citizens on behalf of and in conjunction with customers.

Services

• Business Process Outsourcing BPO Service Desk Service Delivery - Information and Functional Support: Availability Management of BPO Systems Service Delivery Management: Service Request Management

Key customers

No of customers 2016/17: 5 (1.4% of total) Top 5 customers: • Department of Planning, Monitoring and Evaluation • National School of Government • Department of Military Veterans • Eastern Cape: Department of Economic Development and Environmental Affairs • Eastern Cape: Department of Roads and Public Works


33 SITA SOC Ltd

Bulk Printing Services

Value proposition

We offer customers high quality printing services using high speed digital printers for distribution.

Services

• Commercial Printing Printing Pre-processing Post-processing / delivery

Key customers

No of customers 2016/17: 15 (4.2% of total) Top 5 customers: • City of Tshwane Metropolitan Municipality • North West: Department of Education • Free State: Department of Education • Govan Mbeki Municipality • Rustenburg Local Municipality


SERVICE DELIVERY PROBLEMS – INFRASTRUCTURE

34 SITA SOC Ltd

35 SITA SOC Ltd

Hosting, Application Maintenance, and Application Development

Key Initiatives Status February 2017

Hosting The hosting environment is old and needs a strategic refresh. The strategic approach is explained in more detail in Annexure B, under the Cloud Strategy. Currently, the organization contracts with OEMs for support and maintenance services.

Application Development

The application development environment is under-resourced, uses old-fashioned development methodologies and is constrained by the age of the platform environment. The strategic approach to solving problems in t his area is explained in more detail in Annexure B, under the e-Government Strategy.

Application Maintenance

The bulk of SITA employees in the Operations environment are employed to maintain the old existing applications, and specifically, to provide functional applications support to departments. SITA can approach this area in a different way and the strategic approach is currently being defined under the Business Model Review work, which will be completed at the end of April 2017.

36 SITA SOC Ltd


Key Initiatives Status February 2017

Broadband Programme Programme with multiple projects to enable broadband capacity is in progress : • DTPS SA-Connect Initiative • WC Broadband Programme • EC Broadband Programme

Port Costs • SITA has signed different Service Level Agreements (SLAs) to offer Wide Area Network Services (Port cost) to several customers. SITA shares the responsibility of service delivery with external service providers for the last mile connectivity. The last mile connectivity costs are passed through to the customer with no margin charged. The critical part is for customers to understand how much it costs them over and above the rental cost, which SITA identifies that as a Port cost.

• The tariffs charged for NGN Port cost have always been a major contentious issue for SITA clients. The dissatisfaction has increased with the increased broadband penetration, as the SITA billing model does not cater for high speed links.

• In order to improve customer satisfaction, a campaign has been launched to reduce the effective costs of the port charges for services less than 2048 Kbps for upgrades and new services and create a feasible path for bandwidth upgrades.

Network Strategy • To create redundancy on key DHA operational sites for TELKOM failures, VSAT capabilities is being tested. Feasibility study may lead to wider deployment.

37 SITA SOC Ltd


Upgrade

2,048

2,560

3,072

3,968

4,096

4,608

5,120

6,144

7,168

8,192

8,704

9,216

10,240

Now

1,344 9,480.00

9,697

11,856

12,823

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

1,536 10,620.67

11,856

12,823

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

1,600 11,000.78

11,856

12,823

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

1,664 11,380.90

11,856

12,823

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

1,856 12,521.29

12,823

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

1,920 12,901.44

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

1,984 13,282.00

13,870

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

2,048 13,661.75

14,424

15,602

16,875

19,741

23,094

24,018

24,979

25,728

25,900

2,560 16,703.26

19,741

23,094

24,018

24,979

25,728

25,900

3,072 19,745.20

24,018

24,979

25,728

25,900

3,968 25,069.62

25,900

The port cost reduction campaign was launched at the end of October 2015 at the GovTech and received a warm welcome from departments.

38 SITA SOC Ltd


The campaign is a value-for-money proposition, that allows departments to make use of existing budgets or marginally increased budgets to get more bandwidth. Since the campaign is geared towards increasing bandwidth beyond 2Mbps, it also creates an incentive for departments to move to more rorust technologies in terms of ease of upgrades, service availability and susceptibility to vandalism.

SITA Port Cost Upgrade Campaign: Example 1

Current Upgrade

Bandwidth (Kbps) 2048 4096

Bandwidth (Mbps) 2 4

Price R 13,661.75 R 14,424.48

Price/Mbps R 6,830.87 R 3,606.12

Price/Mbps Change -47%

SITA Port Cost Upgrade Campaign: Example 2

Current Upgrade

Bandwidth (Kbps) 1984 4096

Bandwidth (Mbps) 1.94 4.00

Price R 13,282.00 R 14,424.48

Price/Mbps R 6,855.23 R 3,606.12

Price/Mbps Change -47%

39 SITA SOC Ltd


The interest in and the implementation of the campaign has stalled due to the slow pace of installations from the incumbent access lines service providers. The organization has since made a decision to go to the market to look for alternative providers of the access lines.

Reporting Period Number of Accepted Proposals

Original Bandwidth (Kbps)

New Bandwidth (Kbps)

Change (Kbps)

March 2016 222

May 2016 287

July 2016 356 570, 242 2,123, 264 1,553, 022

December 2016 371 707, 074 2, 614, 784 1, 907, 710

January 2017 375 712, 002 2,637, 312 1, 925, 310

February 2017 396 732, 994 2, 750, 976 2, 017, 982

Completed Upgrades To Date

15 February 2017 94 415,490 1,695, 744 1, 280, 254

Finally, as a way of providing better overall management of network services, the organization will be going into the market to source a professional networking management capability that will oversee day-to-day management of the environment and drive tactical improvements in tactical network improvements, network monitoring, service level management and human resources skills development.

40 SITA SOC Ltd

Data and Switching Centres

Strategic Outcomes Key Initiatives

Modernization of the SITA Data- and Switching Centres to provide an annual availability level of at least 99.749% on the electrical and mechanical plants, in support of Hosting transformation initiatives.

• Appointment of a specialist resource to direct the stabilisation and modernisation of the Switching Centre, supported by internal resources and external service providers.

• Full assessment of the Switching Centres’ facility condition and fit for purpose assessment was completed in June 2015.

• Identification of critical items for stabilisation and modernisation and initiating projects to address immediate requirements was completed March 2016.

• Establishment of a full preventive maintenance contract to maintain the Switching Centres’ facility infrastructure (Mean-time-to-respond 2 hours, Mean-time-to-repair 3 hours, Mean- time-to-refill 3 Hours) was completed in November 2016.

The stability of data and switching centers has been a source of major frustration to departments. A data center typically hosts the application environment and a switching center hosts the networking environment. When either goes, then applications are not reachable and computing-based Government services are not available. Since March 2015, a concerted effort has been undertaken to not only stabilize the centers on the electrical and mechanical components, but also develop a long term modernization program.

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Switching Centre Scope of Work Status February 2017

Kimberley • Stabilisation of Electrical and Mechanical plant

• Switching Centre maintenance contract used to address issues.

East London • Mechanical Plant Replacement • Works 90% completed. Awaiting delivery of one imported condenser unit.

East London • Electrical Plant repairs • Completed.

Nelspruit Switching Centre • Electrical Plant repairs • RFQ 1396-AH-2016 closes 02 March 2017. Implementation to be completed by 30 April 2017.

Welkom Switching Centre • Mechanical Plant Repairs and Replacement

• RFB 1501/2016 closed 17 February 2017. Implementation to be completed by 30 April 2017.

All Switching Centres • Full scope preventive maintenance

• Taking place at Ulundi, Durban. Polokwane, and Nelspruit. Modimolle fire systems are repaired.

Modimolle Switching centre • Mechanical plant Modernisation • RFB unsuccessful, to be republished.

Port Elizabeth Switching Centre

• Uninterruptable Power System Modernisation

• RFB unsuccessful, to be republished.

Mthatha Switching Centre • Provision of Generator unit • RFB unsuccessful, to be republished.

East London Switching Centre

• Replacement of Generator unit. • Capital budget has been allocated for the 2017/18 modernisation of the indicated plant

Nelspruit Switching Centre • Replacement of air conditioning system.

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Switching Centre Scope of Work Status February 2017

Kimberley • Stabilisation of Electrical and Mechanical plant

• Switching Centre maintenance contract used to address issues.

East London • Mechanical Plant Replacement

• Works 90% completed. Awaiting delivery of one imported condenser unit.

East London • Electrical Plant repairs • Completed.

Nelspruit Switching Centre

• Electrical Plant repairs • RFQ 1396-AH-2016 closes 02 March 2017. Implementation to be completed by 30 April 2017.

Welkom Switching Centre

• Mechanical Plant Repairs and Replacement

• RFB 1501/2016 closed 17 February 2017. Implementation to be completed by 30 April 2017.

All Switching Centres • Full scope preventive maintenance

• Taking place at Ulundi, Durban. Polokwane, and Nelspruit. Modimolle fire systems are repaired.

Modimolle Switching centre

• Mechanical plant Modernisation


Port Elizabeth Switching Centre

• Uninterruptable Power System Modernisation


Mthatha Switching Centre

• Provision of Generator unit • RFB unsuccessful, to be republished.

East London Switching Centre

• Replacement of Generator unit.

• Capital budget has been allocated for the 2017/18 modernisation of the indicated plant

Nelspruit Switching Centre

• Replacement of air conditioning system.

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Data Centre Scope of Work Status February 2017

Centurion, Beta, Numerus Data Centres

• Modernisation of Main Distribution Boards

• RFB awarded. Beta Data Centre to be completed 28 February 2017. Numerus Data Centre to be completed 28 February 2017. Implementation commenced at Centurion Data Centre.

Numerus Data Centre • Air conditioning Cooling Towers replacement.

• Implementation works completed. Project finalisation underway.

Centurion Data Centre • Air conditioning Chiller plant replacement.

• Implementation work underway. • New Chiller units expected to arrive at

Durban port on 02 April 2017.

Centurion Data Centre • Transformer, Generator and Air Conditioning Modernisation.

Beta Data Centre

• Transformers, Sub Low Voltage Distribution Boards, Electrical distribution Modernisation. Provision of additional UPS batteries.

• Capital budget has been allocated for the 2017/18 financial year for Modernisation of the indicated plant in the Data Centres.

Numerus Data Centre • Transformers and UPS batteries Modernisation.

Pietermaritzburg Data Centre • Air Conditioning Modernisation.

SERVICE DELIVERY PROBLEMS - CUSTOMERS

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Specific Customer Problems

Customer Problem Area Approach

DHA Stability of network services Addressed in Annexure D in detail

DHET Stability of the application environment to enable effective resulting and certification.

Elimination of old certification backlogs

Addressed in Annexure E in detail

SAPS Procurement Addressed as part of Procurement reforms in Annexure C.

DoD Procurement Addressed as part of Procurement reforms in Annexure C

DBE Application development and maintenance Addressed in this section

DSD Application development and maintenance and single point of contact

Addressed in this section

DoL Hosting modernisation Addressed as part of the Infrastructure modernisation program in Annexure B.

GPG Single point of contact

Addressed as part of the Infrastructure modernisation program in Annexure B

KZN Procurement and general technical and management capabilities

Addressed as part of Procurement reforms in Annexure C and in future as part of the Business Model Review work.

NT Human Resources capacity to undertake complex commercial negotiations Availability of the gCommerce platform

Has been addressed through appointment of specialist negotiators.

Addressed as part of Procurement reforms in Annexure C

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Current Challenges Proposed Solution

Long delivery timeframes • SITA is in the process of automating the procurement process to reduce tender process time.

• Category sourcing for consolidation and reduction of reactive buying. • Proper planning by utilising procurement and demand plans. • Effective contract management , to renew contracts on time. • Review skills sets and recruit the right skills for the tasks at hand.

Tenders cancelled Limited supply market intelligence Poor response from suppliers

• Improved tender specifications. • Utilization of CSD to align with SITA ICT database. • Automation and visibility of information to monitor unfair conduct on tender

cancellation.

High prices • On going negotiations initiatives (see slide 5 &6).

Limited development for SMME growth

• Long-term transformation strategy to be submitted for approval in April. • Enterprise Supplier Development programme launched in December 2016, with 16 ESD

beneficiaries. • 20% to 30% allocation of empowered suppliers on large tenders. • Road shows to attract and educate SMMEs. • Periodic refresh on transversals and accredited contracts to allow new entrants.

Vulnerability to Fraud and Corruption

• Implement continuous security vetting and integrity checks. • Automation will increase visibility, audit trail and little human intervention and

manipulation of information and outcome of tenders.

Lack of visibility on concluded transactions.

• Automation and proper systems in place.

The strategic programs in our Procurement Services area are explained in more detail in Annexure C. The rest of this section provides specific and current customer issues.

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Tender No. Description Client Issues and Challenges Proposed Solutions

1443/2016

Procurement of McAfee end Point Protection

Advanced Anti-Virus for Department of Agriculture,

Fishers and Forestry for two (2) or three (3) years DAFF

Lack of understanding of

roles. Client has

requested SITA to cancel

a bid, whereas it is the

Client’s decision and

action to cancel.

SITA to orientate client by

reiteration of process, roles

and responsibilities when

accepting a request from

client.

RFQ 1051-WP-

2003-2016

The Appointment of a Service Provider To Supply,

Install and Maintain a Turnkey Disk-Based Backup

and Recovery Solution For The Department of

Trade And Industry.

DTI

Delay when MPC

requested audit of the bid

because of suspected

collusion during

evaluation.

Automation will assist with

streamlining of evaluation.

RFB

1465/2016

The procurement, deployment, support, and

maintenance of a next generation firewall and

proxy server solution for the Department of

Planning, Monitoring and Evaluation, and training

of DPME staff.

DPME

Client requested

cancellation of bid after

validity of the bid had

expired

Send reminders to the

Client for conclusion of bids

before expiry of the bid

validity.

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Tender No Description Client Issues and Challenges Proposed Solutions

RFB 1450/2016 Renewal of VMWARE Licenses for DPME DPME

Turn-around times not

closely managed.

New end-to-end process that

implements the 2005 SITA

regulations was adopted in

February 2017 and stage

timelines will be incorporated

into performance timelines.

The introduction of the

gCommerce platform, and

the inherent workflow

capabilities, finally enables an

SCM workflow system to be

used to manage interactions

with departments and

handshakes within the

organization.

RFB 1426/2016

Renewal of Redhat Licenses for Arts and Culture

Arts and

Culture

None

RFQ1193-AN-

AH-2016

Purchase of Intella Pro Email Investigation and Ediscovery

Software for a Period of Twelve (12) Months on Behalf of

Western Cape Government; Department of Premier.

Western Cape

Provincial

Forensic

Turn-around times not

closely managed.

RFB 1412-2016

Accreditation of possible bidders to bid in a tender for the

design, provision, customization, integration, migration of

existing data, commissioning, maintenance and support of an

integrated Automated Biometric Identification System (ABIS)

and business processes for the Department of Home Affairs

for a period of five (5) years.

DHA

The confidentiality levels

of the bid required extra

security measures to be

put in place around the

tender. The bid was

communicated late

internally.

RFB 1437

The implementation and maintenance of a vulnerability

assessment and management solution for the Department of

Trade and Industry

DTI

None.

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Tender No. Description Client Issues and Challenges Proposed Solutions

RFQ 1267-1183-

2016

Request to appoint a service provider for the provision of a

disaster recovery solution inclusive of hardware, software,

maintenance and related services.

GPG

Budget constraints have been

communicated from the

Client. Heading for

cancellation.

Budgeting processes

need to be improved

from the Client’s side.

RFQ 1253-2003-

2016

Provisioning of a Disaster Recovery solution inclusive of

hardware, software, maintenance and related services

DSD Technical Specification not

aligned to the business case.

Confirmation of acceptance of

the specification had to be

requested from the client

Expression of scope of

work should be more in

technical terms than in a

narrative mode.

1509/2016

The supply of license maintenance and support; new

licenses, training, installation and configuration services to

the DTI with regard to the ECM Environment

DTI

New request.

LONG TERM MODERNIZATION PROGRAMS

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Long Terms Modernization Programs

Program Description Annexure

Business Model Review

Addresses the structural problems in how SITA

has undergone the execution of its mandate, as

detailed in the SITA Act (as amended) and SITA

Regulations.

A

Infrastructure and Services Modernization

Address inherent weaknesses in the application

development, hosting, data and switching centers

and network areas.

B

Procurement Reforms

Addresses the weaknesses that result in the long

standing problems on turnaround times, fraud

and corruption and strategic value proposition of

the SITA.

C

The existential transformation of SITA needs to be underpinned by a review of the manner in which the organization has undergone the implementation of its mandate. This review should result in bold decisions about how the organization should change its fundamental value proposition, ensuring that it drives the development of a connected Government , that it supports the Government with secure and well maintained IT infrastructure, that its existence must not be an unjustifiable cost to the economy and society and that ultimately, it focuses its energies and subjects itself to be measured through measurable public service delivery value propositions .

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