1. Presentation to Select Committee on Local Government & Administration
16/01/2019
Presentation to Select Committee on Local Government & Administration

2. Financial Sustainability Turnaround Strategy
16/01/2019
Contents
Background
SITA Mandate
Performance Overview
ITAC
Financial Sustainability
Turnaround Strategy

3. 16/01/2019
SITA Background
The 1997/98 Presidential Review Commission Report identified problem areas regarding Information Technology
Identified issues:
Inability to
- recruit and retain skilled personnel
- manage IT procurement
- position ICT as an enabler of Government in the delivery of public services
Ineffective utilisation of expensive IT resources
Integration of IT services and facilities across Government

4. SITA is mandated by Act of 88 of 1998 as amended
16/01/2019
SITA is mandated by Act of 88 of 1998 as amended
The objective of the Agency is to:
Provide information technology, information systems and related services;
Maintain information systems security; and
Act as an agent of the South African Government.

5. Performance Overview Successes Challenges Enterprise Agreements
16/01/2019
Performance Overview
Successes
Challenges
Enterprise Agreements
Youth Internship Programme
Savings for Government
E-Gateway Project
Unqualified financial results
Integration of State IT components
Master Systems Plan
Availability of critical services
Printing
ITAC processes
Quality Services
Pricing
Timous delivery
Stakeholder / Client relationships
Cost recovery
Transformation
Skills retention and development
Commercial and Agency role
Bullet points illustrate the issues facing SITA in offering these non-mandatory services.
Headcount for LAN: ~1,000 people. Headaches partly caused by regional structures which need to be managed.
Example of non-transversal system would be eNATIS. SITA only engaged late and is therefore unable to influence or change an inappropriate process.
Local Government: Lack of local govt expenditure is part of the reason for regions missing revenue targets, e.g. Gauteng budgeted R45M revenue from local govt but only invoiced R75,000.
Training: SITA budgeted to lose ~R10M in 2005.
R&D: R52M budgeted for 2005: ~R39M below the line & ~R13M above the line. Problems: not always customer focused & so value add is sometimes questionable. Very little primary research done.

6. ITAC handles only a fraction of Government IT spend
Source: BMI Technology; ITAC
Note: Spend for period 1 April 2003 to 31 March 2004; ITAC has limited record of value spent through transversal contracts

9. The Three-year Strategic Imperatives…
16/01/2019
The Three-year Strategic Imperatives…
1.Radically improve service delivery to our clients
6.Maintain financial sustainability
2.Prioritise
citizen-focused projects
Mission
To cost-effectively enhance public service delivery through ICT
5.Build an appropriate organisational structure and team to achieve our strategic
objectives
3.Drive to best demonstrated practices in people management and leadership
4.Overhaul internal & external communications to improve transparency, visibility & image
The next six slides detail the goals for each of the initiatives.

10. Umuntu Ngumntu Ngabantu