SITA Presentation to Portfolio Committee on Police

on SITA Services Provided to SAPS -FY2010/11.

19 October 2011

By: Acting Chairperson of Board Ms Fébé Potgieter- Gqubule

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Scope Introduction 2010/2011 Service Scope per SLA against Performance

Hosting and Bureau SLAs Network SLA Application Maintenance & Development Services Decentralised Network and IT equipment Support SLA Specialised Consulting Services SLA

Service contracting for 2010/11 Actions To Remedy Service Challenges SITA Annual Results for 2010/11 Expiry of Contract 569 – Implications for SAPS SITA and SAPS Strategic Priorities for 2011/12

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IntroductionSAPS and SITA signed the following SLAs in 2010/2011:

Hosting Services Network Services Application maintenance and Development Services Decentralised network and IT equipment Support Specialised Consulting Services Bureau Service for Transversal Systems

The following process is followed towards contracting: ICT requirement analysis In-year performance analysis Performance targets and service scope agreement Price negotiations

2010/2011 Service Scope Hosting and Bureau SLA against Performance

Service Scope 52 applications hosted

6 Transversal system 9 Critical systems 18 Reporting systems

98% guaranteed availability Guarantee response time:

Oracle = 0.8 seconds Adabas = 1.0 seconds

Interdepartmental Data Exchange platform rendered through Hosting services Performance Outcomes

99.9% availability Oracle = 0.8 seconds Adabas = 1.0 seconds

Challenges Processing capacity (85% on 24 hour Storage (not sufficient capacity – 500meg) 4

2010/2011 SLA (Opex): R246 m (Capex): R100 m

2010/2011 Service Scope Network SLA against Performance

Service Scope WAN & LAN Network Management System eMail and Internet PBX IJS VPN Communication (satellite Services)

Performance Levels Core - 98% guaranteed availability Remote site – 95% Active Directory – 98%

Performance Outcomes 99.6% avarege availability Remote – 97% Active Directory – 99.5%

Challenges Active Directory – old server infrastructure Remote site - Old Xyplex infrastructure

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2010/2011 SLA (Opex): R321 m (Capex): R425 m

2010/2011 Service Scope Application Maintenance & Development Services SLA against Performance

Service Scope Applications Maintenance

Corrective , Routine and data maintenance Perfective and Adaptive Enhancements

Application Development Development of the Investigation Case Docket Management System

Performance Outcomes Maintained 32 applications Completed Application System Infrastructure for the ICDMS Criminal Case Registration of the ICDMS 70% complete

Challenges User requirements not complete ICDMS team not fully resourced

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2010/2011 SLA (Opex): R191 m (Capex - ICDMS): R9.2 m

2010/2011 Service Scope Decentralised Network and IT equipment Support SLA against Performance

Service Scope First Line hardware & software support and maintenance ICT advisory services ICT Support Services (ITIL & COBIT) Specialised services ( e.g: Email administrative services, HQ support& Criminal Record Centre

Hardware maintenance) Performance Levels

Faults 2010 : 193 106 reported compared to 195 181 in 2009 Equipment supported 2010: 179 727 compared to 170 036 devices in 2009 Upgraded network in 314 sites Mean Time To Repair

Faults = 6 hours average on calls logs VIP & Mission Critical = 2 hours average on calls logs

Performance Outcomes Cabling of 314 sites completed Mean Time To Repair:

Faults = 6 hours average on 60% of calls VIP & Mission Critical = 2 hours average on 50% calls logs

Challenges WAN connection outstanding due to absence of Telkom infrastructure. 7

2010/2011 SLA (Opex): R 472 m (Capex) – Network Upgrade:R487m Actual :R419 m

2010/2011 Service Scope Specialised Consulting ServicesSLA against Performance

Service Scope Provision of resources for support of Architectural Services for SAPS

Challenges Tend to be used for permanent contracting purposes instead of HR

recruitment Difficult to manage performance levels and outcomes

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2010/2011 SLA (Opex): R4.8m

Service contracting for 2010/11

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Recurring ICT Support Services

SLA Description Signed SLA Value 2010/2011 ( VAT Inclusive)

Application Maintenance Services R191 220 740

Specialised Consulting Services R 4 783 760

Bureau Services R 4 316 924

Centralised Data Processing Services R 242 235 052

Network Support Services R 321 723 501

Decentralised Support Services R472 104 627

SUB TOTAL R 1 236 384 604

Actions To Remedy Service Challenges SITA deploying Cloud Computing Infrastructure that will allow the increase

and decrease of both storage and processing capacity as and when required on an Infrastructure-as-a-Service (IaaS) Model. SAPS indicate willingness to partner SITA on the cloud computing deployment.

IaaS is a more affordable storage and processing service for SITA clients as it utilises Pay per Use (Pay as You Go) payment model.

SITA in the process of finalising the government network strategy that will benefit the SAPS Network Upgrade programme inclusive of replacing old technology

Mechanism for the definition of the full ICDMS requirements in place. SITA sourcing industry partners to assist with the completion of the ICDMS SITA is sourcing partners for alternative connectivity that will guarantee the

same service levels for rural areas Offered SAPS service-based performance and not a body shop

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SITA Annual Results for 2010/11

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SITA Corporate PerformanceIn Rand 2011 2010

Revenue 4 302 402 597 3 941 772 740 Cost of sales 3 527 332 690 3 260 281 462 Gross surplus 775 069 907 18.01% 681 491 278 17.29%Other income 44 186 050 28 356 314 Operating expenses 632 411 782 14.70% 732 092 574 18.57%Surplus from operating activities 186 844 175 4.34% (22 244 986) -0.56%Finance income 115 185 809 129 544 393 Finance expenses 38 536 865 57 737 195 Surplus before income tax 263 493 119 6.12% 49 562 213 1.26%Income tax expense 77 814 905 17 822 647 Surplus for the year attributable to shareholder 185 678 214 4.32% 31 739 566 0.81%

SAPS Annual Results for 2010/11

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SAPS Account PerformanceSITA SAPS SAPS SAPS

in Rand (Vat Excl) 2010 Expected SLA contribution as

per SITA Costing Model

Actual SLA signed less

2.5% discount

ActualYear-end Results

Revenue 4 302 402 597 1 107 147 081 1 080 351 617 1 420 601 588Cost of Sales 3 527 332 690 873 571 164 873 571 164 1 170 587 215Gross Surplus 775 069 907 233 575 917 21.1% 206 780 453 19.1% 250 014 373 17.6%Other Income 44 186 050Operating Expences 632 411 782(Deficit)/Surplus from operating activities

186 844 175 233 575 917 206 780 453 250 014 373

25.1% of Revenue 33% of Revenue

Expiry of Contract 569 – Implications for SAPS Contracts of resources appointed based on Contract 569 cannot be

renew 79 Labour Broker Contractors (LBC) contracted directly by SAPS

50 LBCs contracts already expired as of 30 Sept 2011 12 LBCs contracts will expire between 1Oct & 30 Dec ’11 15 LBC contracts will expire between 01 January – 31 May 2012

71 SITA contracted LBCs servicing SAPS and all contracts expire 31 March 2012

Process to determine service requirements and deliverables underway for the 79 directly contracted by SAPS

Deliverables to be serviced through Contract 570 where SITA does not have capacity

SITA no longer offering SAPS a resource-based SLA but service-based13

SITA and SAPS Strategic Priorities for 2011/12

Focus on completing outstanding deliverables Investigation Case Docket Management System (ICDMS) Award the Integrated Mobile Vehicle Data Command &

Control Solution (IMVDCS) Network upgrade

Focus on improving service and cost efficiency Introduction of Voice-Over-IP to reduce the cost of telephony Initiate the integration of the SAPS network into the

government network Commence the procurement process for the installation of

war rooms

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Thank You

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