Select Committee on Local Government & Administration Lucas Mogashoa GM Strategic Services Sagaren Naidoo GM Finance 10 May 2007

Agenda 1. Introduction 5. Challenges 2. SITA Transformation 4. FY08 Budget 3. Strategic Objectives

INTRODUCTION

Mandate and Funding SITA is an enacted company that derives its mandate from – SITA Act 88/1998 as amended 2002. SITA Act 88/1998: General Regulation NR 904, DPSA, Sept 2005. Funding Model SITA Pty (Ltd) is a Schedule 3a Public Company. Financially self sustaining through Products and Services.

SITA Act Objective To improve service delivery to the public and to promote the efficiency of departments and public bodies through the use of ICT and related services in a secure environment.

Increased Productivity Government Architecture House of Values Security Interoperability Reduced Duplication Economies of Scale BEE Enablement Lower Cost Increased Productivity Citizen Convenience Government Architecture

SITA Mission and Vision Vision: To be a global leader in public sector information and communications technology. Mission: To cost-effectively enhance public service delivery through information and communications technology Values: Service Excellence Transparency Integrity Fairness Prudence Innovation

Mandated Services to Government Transversal Systems Standards & Certification IS Convergence Strategy Disaster Recovery Strategy IS Inventory ICT Research … and related Services as per BA (e.g. Consult, Train, Support) Private Telecoms Network Procure ICT

Human Resources Statistics African White Coloured Asian Total   Male 541 500 74 89 1204 Female 422 404 69 31 926 963 904 143 120 2130

Top Accounts

Revenue per Business Unit Central Region 119,160,399 Coastal Region 651,140,081 Northern Region 429,354,617 National Departments 1,056,991,765 SAPS 539,157,035 DOD 539,923,992

SITA TRANSFORMATION

SITA Transformation Reasons for Transformation Approach SITA Image, Customer Perception, Employee Morale Transformation – A Journey not a Destination Approach Arrest & Normalise The Situation Rationalise For Optimum Performance Strategic Imperatives Radically improve service delivery to the Citizens; Prioritise Citizen-centric projects; Drive to the best demonstrated practice in people management and leadership; Overhaul internal and external communication to improve transparency, visibility and image; Build an appropriate organisation structure and team to achieve strategic objectives; Maintain financial sustainability.

Performance to Date Service Procurement Finance Projects GovTech CSI FY04/5 (47%) FY06/7 (62%) Procurement Tender Days FY04/5 (242) FY06/07 (76) Finance Revenue FY05/6 (R2.9Bn) FY06/7[P] (R3.3Bn) PBT FY05/6 (3.9%) FY06/7 [P](4.6%) Projects Batho Pele Gateway – Translation Track and Trace GovTech Public Sector ICT Conference Thought Leadership

STRATEGIC OBJECTIVES

Trends and Drivers Communication Convergence Service Oriented Architecture eGovernment Maturity Identity Management Open Source Movement Strategic Out Tasking Consolidation and Partnerships

Objectives Manage Operations Radically Improve Customer Experience of SITA Focus on Operational Efficiency and Effectiveness Reposition SITA for Public Sector ICT Leadership Accelerate the Implementation of eGovernment Provide Thought Leadership Develop Appropriate Partnerships and Alliances

Initiatives Destination to Success - Change Management Service Improvement Programme e-Government Revitalisation Municipality Blueprint Integrated Financial Management System New Generation Network Platform OSS Project Management Office Industry Wide Skills Development

FY08 BUDGET

Consolidated Statement of Financial Performance

Consolidated Cost of Sales

Total Depreciation

Total assets

Equity and Liabilities

Property, plant and equipment movements

Capex Budget

Cash flow Statement

PEER COMPARISON

CHALLENGES

Challenges Constraining Funding Model Weak Legislative Mandate Industry Skills Scarcity Reluctant Client Base

Thank You Q & A “A man who does not think and plan long ahead Lucas Mogashoa GM Strategic Services Sagaren Naidoo GM Finance State IT Agency (Pty) Ltd 459 Tsitsa St. Erasmuskloof Pretoria, South Africa Web: www.sita.co.za “A man who does not think and plan long ahead will find trouble right at his door.” - Confucius