SITA 2003/2004 Annual Report Results Presentation CHIEF EXECUTIVE OFFICER’S REPORT

1. SITA 2003/2004 Annual Report Results Presentation CHIEF EXECUTIVE OFFICER’S REPORT Thursday, 30th September 2004 Serving the nation through technology

2. Agenda Introduction Business Highlights Operations Regional performance IFMS Human Capital Acknowledgements Serving the nation through technology

3. Introduction • First Report as SITA CEO: • Significant degree of progress made • Built on solid institutional foundation • Founding Legislation (SITA Act No 88 of 1998, as amended in 2002) • Continuous stakeholder consultations. • Broad SITA Mandate • Efficient and cost effective management of procurement services • Certification of the quality of goods and services provided. • Management of government transversal systems. • Provide Professional services such as ICT training, Advisory Services. • Research and Development, etc. • Implemented a range of approved programmes in spite of a major • restructuring initiative. • Developed a three-year Strategic Plan, approved by the Board. • Completely restructured the Executive Leadership. Serving the nation through technology

4. Business Highlights • Financial Performance: • Revenue up from R 1,9 billion to R 2,3 billion. • Posted Profit before tax of R 51,7 million • The 2004-2007 Strategic Plan and Turnaround Strategy: • Strategic Plan approved by the SITA Board • Underpinned by the Turnaround Strategy’s six Strategic Imperatives • Restructuring of ITAC: • Team of external professionals and officers from National Treasury set up to develop an appropriate ITAC Model to remedy ITAC shortcomings • New Executive for Procurement subsequently appointed • Master Systems Plan: • New product offering termed “MSP in a box” was developed by the Research and Development Unit. • Aims to achieve a Government-wide standardisation of the IT architecture framework. Serving the nation through technology

5. Operations • Hosting Services; • Increased Mainframe infrastructure to more than 7 500 MIPS, OF WHICH 1 746 MIPS is available for Disaster Recovery. • Foundation Software also upgraded to afford Government the latest functionality to exploit capabilities on offer. • Printing capacity of the Bloemfontein Data Centre was increased from 900 to 3 300 images per minute. • Availability figures of up to 99% are guaranteed on Transversal Systems. • SITA consistently exceeded this norm and achieved 100% month-on-month availability. Thus, for instance; • More than 1,2 million public servants are paid on time every month. • More than three million South Africans receive social grants monthly • Service Providers to the State receive payments on time. Serving the nation through technology

6. Operations… • Networks: • Government Common Core Network went live on 20 December 2002. • Core infrastructure provides carrier grade technology used by the telecommunications industry. • Supports multimedia traffic, integrating voice, video and data transmission capabilities within a single unified system. • Batho Pele e-Government Gateway Project: • In conjunction with a number of stakeholders, critical tasks were completed to prepare the Gateway Project for the launch. • Projects was subsequently successfully launched in early August 2004 Serving the nation through technology

7. Regional Performance • Increased Bandwidth: • Rural connectivity was improved through increases in bandwidth of a number of data lines. • Management Information System rollout: • The phase 1 rollout of the Management Information System for social workers and social security applications was successfully launched. • Development of MSPs • Confirmed MSPs for Mpumalanga, Eastern Cape and Gauteng Provincial Governments. • CIPAL / SITA Partnerships: • In conjunction with CIPAL, SITA has implemented a Financial Application System for the Thabo Mofutsanyane District Municipality in July 2003. Serving the nation through technology

8. Research and Development • MSP in a box: • Flowing from the development of the MSP-in-a-box toolkit, six pilot sites. • Integrated Data Analysis: • A pilot was launched at the Department of Social Development, which revealed that an enormous amount of money has been lost through fraud and error. • Tele-medicine: • Pilot done in collaboration with the Medical Research Council and the National Department of Health. • Seeks to exploit cost-effective means of deploying tele- medicine country-wide. • Open Source Software: • Project being done in collaboration with CSIR, CPSI and GITOC. • Pilot sites in government departments being identified. Serving the nation through technology

9. The Integrated Financial Management system • Phase 1 of the project started in February 2003. Some of the key • deliverables were; • The development of a detailed User Specification Requirement (URS). Completed. • Finalisation of a Master Systems Plan to propose a technical solution. Completed. • Development of a Project Prospectus. Serving the nation through technology

10. Human Capital • Training and Development: • R 26,7 million was spent on staff development and training. • In addition, the Leadership Development Programme (LDP) and the Management Development Programme (MDP) were launched in partnership with the Gordon Institute of Business, • Employment Equity: • 63% of SITA employees are black whilst 38% of them are female. The target for females is 45% • Youth Internship Programme: • 300 youth interns were training in various ICT programmes. • Over 100 of them have already been placed into positions in various government departments and SITA. • Employee Well-being: • An HIV/AIDs Programme was launched on 1 December 2003. Serving the nation through technology

11. Acknowledgements • Minister of Public Service and Administration, Mrs Geraldine • Fraser-Moleketi: • For her political support and guidance during such a testing time. Our thanks also go to Mr Alvin Rapea, former acting DG at DPSA, whose support we could always count on. • Chairperson of the SITA Board of Directors: • For giving unwavering support to SITA management, whilst demanding high-level service delivery. • We also acknowledge with thanks the constructively critical and supportive guidance from the Board and its committees • Staff and Management: • My special tribute goes to staff and management. What success we have achieved to date would have been unthinkable without the support they gave and confidence in leadership Serving the nation through technology

12. THE END SITA: Serving the nation through technology Serving the nation through technology