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

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

3. INTRODUCTION

4. 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.

5. 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.

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

7. 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

8. 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

9. 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

10. Top Accounts

11. 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

12. SITA TRANSFORMATION

13. 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.

14. 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

15. STRATEGIC OBJECTIVES

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

17. 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

18. 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

19. FY08 BUDGET

20. Consolidated Statement of Financial Performance

21. Consolidated Cost of Sales

22. Total Depreciation

23. Total assets

24. Equity and Liabilities

25. Property, plant and equipment movements

26. Capex Budget

27. Cash flow Statement

28. PEER COMPARISON

32. CHALLENGES

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

34. 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:
“A man who does not think and plan long ahead
will find trouble right at his door.”
- Confucius