SITA-DoSS BUSINESS REVIEW

Purpose of the presentation To present a Review of SITA’s business with DoSS to the Safety and Security Portfolio Committee.

Agenda SITA-DoSS Business Model Financial Review Alignment with Strategic Plan Global Trends SITA’s Key Issues Conclusion serving the nation through technology

SITA-DoSS Business Model Background DoSS part of the formation of SITA 415 Employees Transferred to SITA 25% Increase in the Labour Costs @ Inception HR Turnover Stabilised SITA Services to DoSS Centralised Data Processing Corporate Databases (Data Storage) High Volume Printing Facility Backup Facility Wide Area Network Local Area Networks Application Development and Maintenance Specialised Consulting Services Bureau Services for Transversal Systems Training Relationship Model Direct Services to DoSS “Body-Shopping” Services In-Out Services (No Margin)

Financial Review Revenue Growth Of Services Hosting Environment 1999/2000 R355m 2004/2005 R651m Growth 83% Growth Of Services Hosting Environment MIPS Growth 137% DASD Growth 206% Revenue Growth 95,5% Desktop PC’s Growth 61% Revenue Growth 41% Software (BI Products and Services) 2001/2002 R17,9m 2002/2003 R17,5m 2003/2004 R42,7m 2004/2005 R55,5m Growth 210%

Financial Review … Network Services Revenue Composition TOTAL REVENUE 1999/2000 R56m 2004/2005 R103m Growth 84% Non-SITA Revenue 1999/2000 R33m 2004/2005 R77m Growth 133% SITA Revenue 1999/2000 R23m 2004/2005 R26m Growth 13% Revenue Composition 04/05 Revenue Labour Brokers External Services Software and Hardware Total Non-SITA Revenue Estimated SITA Revenue R651m 18.37% 17.68% 34.38% 70.43% 29.57%

Alignment with Strategic Plan Programme 1: Administration Financial Systems HR Management Systems Logistical Systems BI/GIS Programme 4: Crime Intelligence BI/GIS Programme 5: Protection & Security RIMAS Programme 2: Visible Policing Crime Administration System BI/GIS Border Control Mobile Data System Programme 3: Detective SVCS LIMS AFIS IBIS LCR Administration System Analyst Notebook/BI/GIS Starlab

Global Trends Areas of Investment Cyber Crime Bio Metric Applications Business Intelligence Robust & Secure Network Infrastructure Mobile & Wireless Solutions IP Surveillance

ISSUES DoSS ICT Requirements vs. Budget Service requirements growth, higher than budget growth “Carry Through Effect” of current expenditure Alignment with IJS DoSS key member of IJS Interoperability of DoSS and IJS “Carry Through Effect” of IJS investment “Ring-Fencing” of Resources SITA’s dual Responsibility SAPS >80% Ring fenced Effect on Tariffs Profitability of the Business DoSS Tariffs vs. National Treasury Tariffs Increase of tariffs by third parties

CONCLUSION DoSS Lead Department in ICT usage Pressure on ICT Budget will Increase DoSS Integral Part of SITA Use DoSS-SITA Partnership to absorb Budget Pressure Potential Role of SITA much greater ICT Advisor

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