© SITA (Pty) Ltd 2002 – Prepared by Colin van Schalkwyk Parliamentary Portfolio Committee Presentation 05 June 2002

© SITA (Pty) Ltd 2002 – www.sita.co.za Prepared by Colin van Schalkwyk

Parliamentary Portfolio Committee Presentation

05 June 2002


Agenda

• Update on the progress of partnership delivery

• SITA finances and cash flow management

• ITAC the means to delivery


Objectives of Partnership

SITA will use Partnerships to achieve the following:

•Provide access to convenient ,cost effective and high quality Information Technology (IT) services;

•To Partner with the Public (including state owned enterprises) and Private sector to develop innovate IT delivery solutions e.g. Partnership with SABS for providing IS Security solutions

•Develop a positive regulatory environment for IT service Delivery that will ensure that the Social , Economic and Political impact of the regulation of e-Government services are carefully managed


Areas of Partnerships

SITA Partnership levels will have a strong focus on e-Business solutions and typically operate in the following areas:

- Consulting services- System integration- Evaluation,implementation and continuous improvements on Government initiated projects


Partnership levels

The SITA service Partnership will be possible at the following levels:

- SITA Global Partnership: Applicable to strong companies who provide comprehensive service offerings and operate with market coverage of the whole entire country

- SITA Alliance Partnership:Applicable to strong consulting companies offering comprehensive services to SITA key accounts in the corresponding market.

- SITA Global Alliance Partnership:The Global Alliance Partnership is the highest partnership level.This level

represents a selected group of companies with a dedicated SITA business focus. Commitment is demonstrated through the significant investment in resources. Participation is offered by invitation through the SITA Board approval process


•Service Partners:Applicable to companies offering consulting services in areas like business re-engineering, evaluations, implementation and system integration

•Technology Partners:Applicable to key technology driven vendors who enhance the technological platform for SITA.These are companies offering hardware,operating systems,databases,networks or storage facilities

•Software Partners:Applicable to companies that supply SITA customers with third-party software products and services that may interface or offered as integrated “mini-apps”.This category will also comprise software manufacturers

•Hosting Partners:Applicable to companies with a huge knowledge in areas of application management ,hosting ,service provision ,and market-place hosting

-

TYPES OF PARTNERSHIP


TYPES OF PARTNERSHIP (2)

• Channel Partners:• Applicable to BEE / SMME that provide value added service industry specific

solutions and services to Government

• Education Partners:• Applicable to companies that deliver high-quality professional education in and

around the business solutions.

• Support Partners:• Applicable to companies that deliver high quality support through the entire life

cycle of a SITA solution

• Content Partners:• Applicable to industry leaders who offer the best content in terms of information

on companies needed to keep pace with today’s rapidly changing Business landscape


Partnership update

• SABS - information security• CSIR - technology research• Delloite Consulting – ITAC• AST - security delivery and implementation• CIPAL – International (Belgium) under discussion for

Municipality delivery• EDS under discussion for knowledge share• Arivia.Kom 5 priority projects for delivery of

Transversals


CASH FLOW MANAGEMENT PROCESS

Cash flows are bi-weekly compiled by the Divisions and Holding

Consolidated cash flows are approved by

EXCOM - based on the available cash Cash flows are monitored by comparing

the budget to the amount spent and the amount committed


0

100

200

300

400

500

Apr'01 - JunJul - SepOct - DecJan'02 - Mar

Bank balanceDebtors

CASH BALANCES vs DEBTORS( per quarter )


0

100

200

300

400

500

RM

Apr 2001Jun Aug Oct Dec Feb

Cash book balance

CASH BOOK BALANCEFor the year April 01 to 31 March 02


ITAC - Background

• PRC Recommendations suggest ICT procurement

reform as a prime consideration

• Legal framework mandates SITA with this task

• National Treasury transforms into a Common

Service Provider

• SITA in mutual agreement with National

Treasury to address ICT component of

procurement reform.


SITA Procurement Policy - Current Focus

• Compile and promulgate a process that

– is legal

– Practical

– Achievable in the current environment

– Addresses as many of perceived shortcomings / challenges as possible


National Treasury Delegations up to 31 March 2002

• Current National Treasury IT delegations

– <R100k

• Departmental responsibility

• 3 Quotes

• Procure from lowest quote and in accordance with specification

– <R750k

• Departmental responsibility

• Internal tender

• Lowest and in accordance with specification

– Above R750k

• National Treasury tender

• Departmental procurement

• Departmental contract management


ITAC Delegations from 01 April 2002

• <R100k

– Client responsibility

– 3 Quotes process

– Procure from lowest quote and in accordance with specification

– Utilise the ITAC Supplier Database (will include suppliers from provincial databases)

• >= R100k

– Tender process to be followed

– All tenders done via the ITAC process

– Consistent and sufficient consultation with clients


ITAC Process Overview


The main objective of ITAC is to facilitate ICT acquisitions through effectively managed contracts with vendors

Primarily,

• Negotiate and manage contracts with vendors in accordance with the

needs of government

– Tender evaluations

• Leverage government buying power to increase the value (and reduce

the cost) of all IT investment in government

– Consolidated procurement

• Source and provide technology that serves as a vehicle for enhancing

government service delivery to citizens

– Research, Certification, Enterprise Programme Management and eSolutions

But also,

• Further the government’s initiatives in increasing value-added

presence of BEE and SMME in the sector


These objectives will be achieved through managing expectations of the various stakeholders in the process

• Identify and agree on the stakeholder map and expectations of the

relationships

– Role players in the process and their capacities

• Develop a process that will be agreed by all stakeholders

– Define and agree the roles and responsibilities across the process

– Set performance measures for the process aligned to agreed

SLAs to manage stakeholder expectations

• Review expectations on a regular basis to manage deviance from

agreed expectations

– What was the plan?

– What was the target?

– What is the actual?

– If not met, what are we going to do differently?

PLAN

DO

REVIEW

PDR methodology


Also, they will be achieved if certain fundamental principles are agreed to by the stakeholders

• Government departments (clients) have ultimate decision

making power in the expenditure of their IT budgets

• ITAC facilitates client needs through effective acquisitions and

integrated contract management

• Once the contract has been setup, the client then interacts with

the vendor directly

– SITA is involved on an ad hoc basis

• Clients feed all their requirements to SITA to leverage (in reality)

on economies of scale when negotiating contracts with vendors

ITAC is based on the fundamental principles that …


The visible value add of ITAC is to setup ICT contracts for government, everything else must be ‘behind the scenes’

Government

(client)Vendor

ITAC

3

1 24

1) Contract Definition

• Do we understand what the customer wants/needs?

2) Contract Development

• Who is best suited to render the solution/service to the customer?

3) Procurement from contract

• ITAC disappears from the day-to-day procurement from the contract

• But behind the scenes, keeps track of customer satisfaction and supplier performance

4) Contract Review / Contract Definition

• On review/renew of contracts, ITAC prepares the required information and manage the process


To deliver to expectation, we’ve had to define a stakeholder map so as to manage those relationships clearly

SITAHoldings

SITA C SITA D

eSERVICES

AccountingOfficer

CIO / IT DirPurchasing

Officer

CabinetDPSA

CoreSuppliers VARs

SMMEBEE

Government Departments

VENDORS

41

2

3

5

GITOCouncil

NationalTreasury

ITAC


The relationships between ITAC and SITA C & D in particular, are critical and require thorough understanding

ITAC

SITA D

SITA C

Accounting

Officer

(National)

Accounting

Officer

(Provincial)

Accounting

Officer

(Local)

IntermediateCustomer

End Customer

• Expectations• Relationship

• Expectations• Relationship


The ITAC value chain helps us to clearly define our relationships with the stakeholders and thus manage them

Develop

Business

Case

Register

Business

Case

Certify

against

(IT House

Of Values)

Manage

Tender

Process

Setup

Contract

Procure

From

Contract

Manage

Delivery

• ITAC and Certification take full

accountability and

responsibility

• But, CONSULTS the client

BEFORE decisions are made

• Client has full

accountability and

responsibility

• SITA C & D support the

client

• SITA E consulted so

the process is

expedited (eg. CERT)

CERT/ITAC delegationClient delegation• Client has full responsibility and

accountability

• ITAC (Contract Management) is

involved in order to monitor and

manage vendor performance

against agreed SLAs

• SITA C and D involved from a

delivery point of view

Client delegation

CLIENT SITA (CERTIFICATION & ITAC) CLIENT


ITAC process is aligned to the government IT House of Values

Service Delivery (User Welfare)

Production Cost

Inter-o

perab

ility

Eco

no

mies o

f Scale

Elim

inatio

n o

f Du

plicatio

n

IT S

ecurity

Primary elementsof IT Value

Enabled by …

Key StrategicFocus Areas

Cost of Access & DeliveryIn-service delivery

Convenience, Choice and Control


It’s important to highlight that in the ITAC process, there is sufficient involvement of clients in tender evaluations

Sign-off By

AccountingOfficer

ConsultationWith

AccountingOfficer

tenderevaluation committee

(incl. client) evaluates andrecommends

to SSB

supplier selectionboard (incl. client)assesses risk andreviews process

conformance

supplierselection authority

(incl. National Treasury)awards tenderto successful

bidder

TEC SSB SSAAO AO


Basic operational capability is in place, we need to deliver on the medium/long term goals

Completed …

• The process and procedures have been

developed and are being reviewed today

• Documentation for the process has been

developed

– Policy, brochure and “How to Guide”

• Logistics have been put in place for the

process to be operational

– Interim Staffed Call Centre - 0800 33

itac - (0800 33 4822)

– www.sita.co.za/itac

– Contracts have been ceded from

National Treasury

• Interim capacity to run the process has

been put in place

– Consultants for a 3 month period

– We are soliciting assistance from

National Treasury staff for contract

migration

… still to do … • The 7 key projects

• Licensing

• Seat Management

• Disaster Recovery Management

• Etc.

• Skills development in ITAC to ideal levels to

meet customer requirements

• Technology research, development and

implementation for ITAC, SITA and

Government

• ITAC Call Centre migration to an E-Services

Call Centre

• Communication Sessions

• National Road shows

• Content Workgroups

• Cross Functional Sourcing teams

• Industry Sessions

• ICT Definition Guidelines


Thank you for all the support and guidance

Documents

© SITA (Pty) Ltd 2002 – Prepared by Colin van Schalkwyk Parliamentary Portfolio Committee Presentation 05 June 2002