services to government departments...
TRANSCRIPT
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
5 SITA SOC Ltd
SITA’s services as intended
6 SITA SOC Ltd
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
8 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
9 SITA SOC Ltd
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
12 SITA SOC Ltd
13 SITA SOC Ltd
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
14 SITA SOC Ltd
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
15 SITA SOC Ltd
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)
2014/15 YTD ICT on SITA (Rm)
2015/16 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
16 SITA SOC Ltd
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)
17 SITA SOC Ltd
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.
18 SITA SOC Ltd
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
20 SITA SOC Ltd
For the national departments…
NoTop 10 National Department (Service
Consumption)
Pro
cure
me
nt
Wid
e A
rea
Ne
two
rk
Ho
stin
g
En
d U
ser
Co
mp
uti
ng
Ap
pli
cati
on
Ma
inte
na
nce
Ap
pli
cati
on
De
velo
pm
en
t
Serv
ice
ma
na
ge
me
nt
Arc
hit
ect
ure
, St
an
da
rds
an
d S
pe
cifi
cati
on
s
Secu
rity
Tra
inin
g
Bu
sin
ess
Pro
cess
Ou
tso
urc
ing
Se
rvic
es
Bu
lk P
rin
tin
g
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%
21 SITA SOC Ltd
And provincial departments
NoTop 10 Provincial Departments (Service
Consumption)
Pro
cure
me
nt
Wid
e A
rea
Ne
two
rk
Ho
stin
g
En
d U
ser
Co
mp
uti
ng
Ap
pli
cati
on
Ma
inte
na
nce
Ap
pli
cati
on
De
velo
pm
en
t
Serv
ice
ma
na
ge
me
nt
Arc
hit
ect
ure
, St
an
da
rds
an
d S
pe
cifi
cati
on
s
Secu
rity
Tra
inin
g
Bu
sin
ess
Pro
cess
Ou
tso
urc
ing
Se
rvic
es
Bu
lk P
rin
tin
g
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%
22 SITA SOC Ltd
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
23 SITA SOC Ltd
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
Customer / Resource / Financial Performance
24 SITA SOC Ltd
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
Customer / Resource / Financial Performance
25 SITA SOC Ltd
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
Customer / Resource / Financial Performance
26 SITA SOC Ltd
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Customer / Resource / Financial Performance
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
Wide Area Network Services
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
Wide Area Network Services
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
Wide Area Network Services
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
Wide Area Network Services
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.
41 SITA SOC Ltd
Data and Switching Centres
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.
42 SITA SOC Ltd
Data and Switching Centres
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.
43 SITA SOC Ltd
Data and Switching Centres
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
44 SITA SOC Ltd
45 SITA SOC Ltd
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
46 SITA SOC Ltd
Procurement Services
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.
47 SITA SOC Ltd
Procurement Services
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.
48 SITA SOC Ltd
Procurement Services
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.
49 SITA SOC Ltd
Procurement Services
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
50 SITA SOC Ltd
51 SITA SOC Ltd
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 .
52 SITA SOC Ltd 52
THANK YOU
QUESTIONS