Strategic Plan and Annual Performance Plan Parliamentary Portfolio Committee on Telecommunications and Postal Services 21 April 2015

Contents 1.Overview 2. Strategic Priorities 3. Strategic Objectives, Indicators and Annual Targets 5. Financial Statements 6. Conclusions

Overview SITA has developed a transformation strategy to make the agency work. The SITA Annual Performance Plan (APP) is aligned to SITA’s 2014-2019 strategic plan. Accountability and good governance are at the core of SITA’s operations. Restoring our customers confidence in the agency is one of our key strategic drivers, under the general banner of customer centricity. SITA continues to strive to improve services delivered to customers so that the depth and breadth of operational grows and ultimately value for government and citizens is enhanced. Transformation and modernisation of our procurement processes is vital. Numerous critical flagship projects such as e-Government and e-Cabinet are gaining traction SITA’s bandwidth has been upgraded by 43 percent resulting in significant cost saving to customers SITA’S core network infrastructure is being upgraded and refreshed to deliver further benefits to customers and enable e-Government roll out

Electronic Government Building a healthy organisation Strategic Priorities Procure goods and services at a lower cost than any single department could on their own, within similar time frames Deliver to customers through an efficient and service-oriented procurement process Leverage economies of scale to provide core IT services (e.g. infrastructure & security) at market-competitive rates and productivity levels Provide advisory services and architecture standards and ICT governance as well as transversal capabilities Act as a thought-leader to customers to proactively identify and deliver on technology needs Value-added procurement A Core IT services B Electronic Government Be the driving force behind the continued digitization of public sector resources in South Africa Set and drive the e-Government agenda for the country and drive the modernization of the public sector Build a customer centric organisation, with motivated employees, an open and trusting culture that fully utilises employee capabilities Building a healthy organisation C Business Enablers D Cybersecurity Build an effective and robust information Security environment within the organization Act as a leading Agency in defending South African Government information Assets (Securing South African Cyber Space) Integrate and automate finance and procurement process Develop transparency on costs of services provided Develop and implement customer engagement model, implement measures to reach desired state

Strategic Objectives, Indicators and Annual Targets Programme 1: Procurement Strategic Objectives Performance Indicators Annual Targets Review and improve SCM turnaround times performance % of tender awards completed within the targeted turnaround time 85% of tender awards completed within the targeted turnaround time % of tender contracting completed within the targeted turnaround time of 30 Days 80%of tender contracting completed within the targeted turnaround time of 30 Days % of tenders published completed successfully/awarded 75%of tender published completed successfully/awarded Drive economies of scale in the acquisition of large ICT goods and services % savings on acquisition of ICT goods and services with major OEM’s 12% savings on acquisition of ICT goods and services with major OEM’s Drive transformation agenda % of ICT acquisition spend through SMME entities 7% of ICT acquisition spend through SMME entities % of ICT acquisitions spend through BBBEE L1-4 compliant entities 30% of acquisitions spend through BBBEE Level 1-4 compliant entities.

Strategic Objectives, Indicators and Annual Targets Programme 2: Service Delivery Strategic Objectives Performance Indicators Annual Targets Enhance efficiency of Government business processes % implementation of e-Government 15 e-Services implemented for 2015/16 % implementation of e-Cabinet lead site implementation 50% of National Government departments trained on e-Cabinet Approval of the award recommendation for the new IFMS project Finalised Solution architecture Configuration completed for testing % implementation of Infrastructure upgrades and modernisation plan 90% of milestones completed as per plan Interim disaster recovery data centre established Primary data centre facility stabilisation % implementation of Process Automation and Integration contract & bid management Item master Budgeting I recruitment Learner management Project management & governance , risk & compliance % level of performance against the SLA metrics contracted 95% performance against contracted SLA metrics Ensure a secure and dependable set of e-government services and supporting structure Number of data loss in the e-government services E-government security architecture E-authentication services Digital signatures (public key infrastructure) Build an effective and robust information Security environment within SITA % of ICT controls implemented according to plan >90% of security (ICT controls) plan implemented Vulnerability management solution Security operations centre NKP complaince Physical access control system replaced SITA employees vetted

Strategic Objectives, Indicators and Annual Targets Programme 3: Financial Sustainability Strategic Objectives Performance Indicators Annual Targets Achieve Revenue Growth % increase in revenue (year on year) R5 390m (8% of Forecast revenue for 2014/15 of R4 692m) Achieve Sound Financial Management % Profitability 3% Surplus after tax Liquidity Ratio 1.2:1 % Expenditure against approved Capex budget 90% of approved 2015/16 Capex Programme 4: Organisation Strategic Objectives Performance Indicators Annual Targets Build a performing organisation % Improvement on High Performing Organisation (HPO) baseline 10% Improvement on HPO baseline (All Dimension) Programme 5: Governance & Administration Strategic Objectives Performance Indicators Annual Targets Establish effective governance practice Compliance with Internal Control Framework All 2014/15 MLPs resolved

Statement of Financial Performance

Statement of Financial Position

Cash Flow Statement

Conclusion Retaining our customers and rebuilding trust amongst SITA’s customer base remains a key objective for the agency. SITA ‘s core services need improvement , the infrastructure needs refreshing to ensure that government’s data is securely stored. SITA is addressing procurement processes and segmenting procurement in a way that allows the agency to respond better, faster and with improved transparency. SITA’s aspiration is to be the lead ICT agency for government hence the focused drive on addressing cultural issues, accountability, motivation, control and coordination. Of the 1127 employees previously reported as displaced only 16 have not been placed and their matters will be resolved by end March 2015. A more focused and condensed balance scorecard ensures that SITA’s focus on improving performance is more achievable