1. S t a t e I n f o r m a t i o n T e c h n o l o g y A g e n c y Select Committee on Local Government & Administration Lucas Mogashoa GM Strategic Services Sagaren Naidoo GM Finance 10 May 2007

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

3. 3 3 INTRODUCTION

4. 4 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. 5 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. 6 6 House of Values Security Interoperability Reduced Duplication Economies of Scale BEE Enablement Lower Cost Increased Productivity Citizen Convenience Government Architecture

7. 7 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. 8 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. 9 9 Human Resources Statistics AfricanWhiteColouredAsianTotal Male 54150074891204 Female 4224046931926 9639041431202130

10. 10 Top Accounts

11. 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. 12 SITA TRANSFORMATION

13. 13 SITA Transformation  Reasons for Transformation  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. 14 Performance to Date SService CCSIFY04/5 (47%)FY06/7 (62%) PProcurement TTender DaysFY04/5 (242)FY06/07 (76) FFinance RRevenueFY05/6 (R2.9Bn)FY06/7[P] (R3.3Bn) PPBTFY05/6 (3.9%)FY06/7 [P](4.6%) PProjects BBatho Pele Gateway – Translation TTrack and Trace GGovTech PPublic Sector ICT Conference TThought Leadership

15. 15 STRATEGIC OBJECTIVES

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

17. 17 Objectives MManage Operations RRadically Improve Customer Experience of SITA FFocus on Operational Efficiency and Effectiveness RReposition SITA for Public Sector ICT Leadership AAccelerate the Implementation of eGovernment PProvide Thought Leadership DDevelop Appropriate Partnerships and Alliances

18. 18  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 Initiatives

19. 19 FY08 BUDGET

20. 20 Consolidated Statement of Financial Performance

21. 21 Consolidated Cost of Sales

22. 22 Total Depreciation

23. 23 Total assets

24. 24 Equity and Liabilities

25. 25 Property, plant and equipment movements

26. 26 Capex Budget

27. 27 Cash flow Statement

28. 28 PEER COMPARISON

29. 29

30. 30

31. 31

32. 32 CHALLENGES

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

34. 34 Thank You Q & A 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.zawww.sita.co.za “A man who does not think and plan long ahead will find trouble right at his door.” - Confucius