SITA Presentation to Portfolio Committee on Police
29 October 2010
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Agenda
IntroductionSITA Services Delivered 2009/2010)
SAPS Account Performance SLA contract planning for 2010/11SAPS Service Requirements 2010/11SITA Service delivery capacitySITA Service Capacity BenchmarkSITA Pricing BenchmarkSITA support of SAPS Strategic ProjectsSITA and SAPS Strategic Priorities for 2010/11
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Introduction
SAPS signed ICT incorporation agreement with SITA Hosting Services Network Services Application maintenance and Development Services Decentralised network and IT equipment Support Specialised Consulting Services Bureau Service for Transversal Systems
Annual Contracting Process Continuous ICT requirement analysis September MTEF projections January/February proposal March/April refinements during negotiations
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Introduction
SLA negotiations concluded 18 November 2009 8 x SITA proposals submitted during negotiation process 8.5% discount secures agreement
SLA signed 11 February 2010 Interim payment arrangement concluded 3 August 2009 Full Government orders received 29 November 2009
Financial
Year Date of SITA
proposal for services
Date of interim
Government Orders issued
First SITA invoices delivered
Date of SLAs
signed
Date Final Government
Orders received
2007/2008 2007/02/02 2007/05/11 May’07 2007/12/06 2007/11/03 2008/2009 2008/01/21 2008/07/28 Aug’08 2009/01/23 2008/12/04 2009/2010 2009/02/10 2009/08/06 Aug’09 2010/02/11 2009/11/29
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SITA Services Delivered 2009/2010Recurring ICT Support Services
Projects and Ad Hoc Transactions(SAPS and IJS CAPEX funding)
PoP - 23 June 2009RECURRING ICT SERVICES 2009/2010
Planning2009/2010
ActualVar %
HOSTING SERVICES R 191,971,458 R 180,605,187 -17.5%BUREAU SERVICES R 5,616,000 R 2,392,514 -57.4%NETWORK SUPPORT SERVICES R 202,225,952 R 177,008,161 -23.2%DISTRIBUTED SUPPORT SERVICES R 376,692,308 R 293,135,033 -31.7%APPLICATION MAINTENANCE SERVICES R 180,878,550 R 162,050,599 -21.4%
R 957,384,268 R 815,191,495 -25.3%
Contracts signed
PROJECTS 2009/2010 2009/2010 Var %
NETWORK UPGRADE R 363,596,491 R 435,352,546 5.0%MAINFRAME UPGRADE R 87,719,298 R 87,686,460 -12.3%DISASTER RECOVERY R 17,540,000 R 17,540,000 -12.3%IJS REQUIREMENTS R 22,273,502 100.0%SOFTWARE LICENSES R 6,949,620 100.0%ICDMS PROJECT R 19,618,121 100.0%AD HOC EXPANSIONS (PBX, NETWORK) R 26,315,789 R 27,829,216 -7.2%
R 495,171,579 R 617,249,465 9.3%
R 1,452,555,846 R 1,432,440,960VAT ExlVAT Exl
SAPS Account Performance 2009/10
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SAPS Cash flow Orders were received in August 2009 SITA had to finance operating costs SAPS averaged 33 debtor days across all services
SAPS contribution to SITA operating expenses SITA negotiates annual sustainability model with NT and
DPSA. Model assumes that all customers contribute equally to the SITA OPEX
SAPS required contribution to SITA OPEX was R198m OPEX contribution only calculated on SLA services – No mark-
up on Infrastructure projects and once-off procurement SAPS actual OPEX contribution was R133.7m
SITA Annual Results for 2009/10
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SAPS Account Performance
SITA SAPS SAPS SAPSin Rand (Vat Excl) 2010 Expected SLA
contribution as per SITA Costing
Model
Actual SLA less 8.5% discount
ActualSLA (8.5%) and
Projects
Revenue 3,941,772,739 886,721,317 817,725,296 1,432,440,960Cost of Sales 3,260,281,463 688,047,579 688,047,579 1,298,710,411Gross Surplus 681,491,276 198,673,738 22.4% 129,677,717 15.9% 133,730,549 9.3%Other Income 28,356,313Operating Expences 732,092,574(Deficit)/Surplus from operating activities
-78,957,611 198,673,738 129,677,717 133,730,549
SITA OPEX contributionSITA OPEX contribution
SLA Contract Planning for 2010/11
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Current contracting status First SITA costing of SAPS ICT requirements tabled on 11
February 2010 Refined SITA proposal with service reduction options tabled
31 May 2010 Interim payment orders to the value of R700m approved 13
September 2010 and received 27 October 2010Operating liability
SITA / SAPS Business Agreement caters for contingency in services pending annual SLA negotiations
SITA agreed at BA meeting of 10 February 2010 to maintain 2009/2010 service levels
30 September 2010 liability is R592.8m (VAT Incl)
SLA Contract Planning for 2010/11
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SAPS Service requirements for 2010/2011 SITA February and May 2010 proposals were based on a
minimum recommended ICT support capacity Substantial growth in SAPS ICT equipment requires additional
resources – Current ratio of 1 technician to 400 devices need to be adjusted to industry norms of 1:185 to improve on current “best effort” response times
Base cost increased year-on-year and SITA reduced its OPEX contribution expectation
SITA Services Proposed 2010/11
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Recurring ICT Support Services
Projects and Ad Hoc Transactions(SAPS and IJS CAPEX funding)
PoP - 23 June 2009 SITA Proposal 1 SITA Proposal 2 Current SITA
ProposalRECURRING ICT SERVICES 2010/2011
Forecast2010/2011
(11 Feb 2010)2010/2011
(31 May 2010)2010/2011
HOSTING SERVICES R 247,297,632 R 295,093,561 R 249,621,690 R 240,850,819BUREAU SERVICES R 5,728,320 R 6,032,000 R 6,032,000 R 3,500,000NETWORK SUPPORT SERVICES R 248,980,592 R 300,802,091 R 209,051,069 R 199,638,623DISTRIBUTED SUPPORT SERVICES R 528,197,954 R 500,543,064 R 574,011,089 R 546,700,466APPLICATION MAINTENANCE SERVICES R 230,945,733 R 234,654,883 R 218,179,552 R 194,870,254
R 1,261,150,231 R 1,337,125,599 R 1,256,895,400 R 1,185,560,162
PROJECTS 2010/2010 2010/2010 2010/2010 2010/2010NETWORK UPGRADE R 750,000,000 R 580,000,000 R 330,000,000 R 330,000,000MAINFRAME UPGRADE R 120,000,000 R 120,000,000 R 120,000,000SOFTWARE LICENSES (Lexis/JUTA) R 19,290,463 R 19,290,463 R 19,290,463ICDMS PROJECT R 31,750,000 R 31,750,000 R 31,750,000AD HOC EXPANSIONS (PBX, NETWORK) R 20,000,000
R 770,000,000 R 751,040,463 R 501,040,463 R 501,040,463
SITA Service delivery capacity
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Resources Gauteng technical support severely understaffed Additional technical resources required in all provinces due to
substantial ICT equipment growth SAPS ICT Equipment Supported
60000700008000090000
100000110000120000130000140000150000160000170000180000
'99/00 '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11
Devices
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SAPS Growth in Service Costs
R 0
R 100,000
R 200,000
R 300,000
R 400,000
R 500,000
R 600,000
Hosting R 142,728 R 134,679 R 155,610 R 202,773 R 232,406 R 205,890 R 253,483
WAN R 95,611 R 89,049 R 107,228 R 123,762 R 151,563 R 199,053 R 211,464
Appl Maint R 163,116 R 139,718 R 153,060 R 180,469 R 202,085 R 184,652 R 214,643
DSS R 149,269 R 153,599 R 257,713 R 279,395 R 365,264 R 334,174 R 578,540
2004/2005R'000
2005/2006R'000
2006/2007R'000
2007/2008R'000
2008/2009R'000
2009/2010R'000
2010/2011R'000
SITA Service delivery capacity
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Resources Due to technological advances in SAPS ICT requirements the
support base costs of SITA resources and industry partners used for hardware support grew as well. All services were affected.
SITA Service delivery capacity
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Resources Current assigned resources are as follows:
Recurring ICT Support Services Number of Services
rendered
Number of Applications Supported
Assigned Resources
Centralised Data Processing 11 38 49
Network Support 8 42
Application Maintenance 46 32 201
Application Development 1 1 23
Specialised Consulting 4 5
Decentralised Services Support 20
DSS SAPS CBU 49
DSS Coastal Region 114
DSS Central Region 51
DSS Northern Region 132
CBU Management 3
Totals 90 39 669
SITA Service delivery capacity
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Industry Partners
SITA Service delivery capacity
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SITA Service delivery capacity
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SITA Service Capacity Benchmark
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Gartner Benchmark Gartner performed an benchmark on all SITA Infrastructure
Services in November 2009. The key finding on specifically the SAPS equipment and LAN
support, is that the number of resources assigned is well below the industry norms (double the current capacity recommended) and that the SITA negotiated cost is almost unsustainably low.
With Gartner’s permission the following summary demonstrate the SITA and SAPS specific measures both in terms of cost and resources.
SITA Service Capacity Benchmark
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SITA 2009 Peer AverageTop Quartile Peer (25th percentile)
SITA % Difference to Peer Average
Mainframe: BAS 23.4 23.7 18.0 -1.27%Mainframe: Non-BAS 27.0 41.4 32.9 -34.78%Unix Servers 8.3 5.3 2.5 56.60%Wintel Servers 6.3 5.6 3.8 12.50%IT Help Desk 73.0 75.9 37.5 -3.82%WAN - NGN 42.0 55.0 23.3 -23.64%Internet - Dedicated 1.8 15.2 8.2 -88.16%Internet - Shared 5.7 9.5 5.1 -40.00%WAN - SAPS 27.6 24.1 6.6 14.52%Total SAPS 215.1 255.7 137.9 -15.88%
± 15%± 15 - 30 %
> ± 30%
SITA 2009 Peer AverageTop Quartile Peer (25th percentile)
SITA % Difference to Peer Average
Client & Peripherals 278.1 468.4 330.6 -40.63%LAN 12.4 95.0 37.1 -86.95%IT Help Desk 52.7 70.1 38.3 -24.82%Voice Premise (PABX) 5.0 8.6 2.7 -41.86%Total DSS 348.2 642.1 408.7 -45.77%
DSS Total Complement 334.6Plus Centurion-based FTEs 13.6 (LAN, PBX)
348.2
Total FTEs
DSS Services
Total FTEs
DSS Services
SITA Service Capacity Benchmark
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+-(relative to peer)
Desktop Support ServicesDesktop Support Services
+-(relative to peer)
Helpdesk ServicesHelpdesk Services
+-(relative to peer)
LAN Support ServicesLAN Support Services
+-(relative to peer)
WAN Support ServicesWAN Support Services
SITA Pricing Benchmark
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SITA 2009 Peer AverageTop Quartile Peer (25th percentile)
SITA % Difference to Peer Average
Mainframe: BAS R104,743 R125,076 R110,469 -16.26%
Mainframe: Non-BAS R119,612 R100,214 R79,611 19.36%
Unix Servers R19,880 R15,406 R7,117 29.04%
Wintel Servers R4,786 R5,233 R3,791 -8.54%
IT Help Desk R29,373 R42,798 R21,137 -31.37%
WAN - NGN R247,384 R473,429 R201,017 -47.75%
Internet - Dedicated R23,172 R32,588 R17,498 -28.89%
Internet - Shared R16,467 R20,416 R10,962 -19.34%
WAN - SAPS R147,538 R215,438 R102,859 -31.52% Includes R119.4m paid by SAPS
Total R 712,955 R 1,030,598 R 554,461 -30.82%
± 15%± 15 - 30 %
> ± 30%
SITA 2009 Peer AverageTop Quartile Peer (25th percentile)
SITA % Difference to Peer Average
Client & Peripherals R244,319 R419,273 R319,949 -41.73%
LAN R4,513 R32,554 R12,733 -86.14%
IT Help Desk R18,734 R18,027 R9,855 3.92%
Voice Premise (PABX) R2,185 R2,651 R821 -17.58%
Total DSS R 269,751 R 472,505 R 343,358 -42.91%
SITA Total Costs - Rand per Annum (R'000)
Total Costs for SAPS Services - Rand per Annum (R'000)
DSS Services
SITA support of SAPS Strategic Projects
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Deployment of E-Docket capability SITA reported in June 2009 that the E-Docket capability was
deployed at 107 police stations. Current status is that E-Docket is deployed to 363 police
stations in 8 provinces (Eastern Cape to be deployed shortly) 600,059 dockets have been scanned to date Durban Central police station leading on 27,382 dockets
scanned. KwaZulu Natal have scanned 278,430 dockets Gauteng have scanned 215,688 dockets
SITA support of SAPS Strategic Projects
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SAPS Network Upgrade Programme (NUP) SITA is tasked on an annual basis with the upgrade of the
SAPS network. Tasking for 2010/2011 is expected shortly. SITA and SAPS agreed to accelerate the NUP projects,
depending on the availability of funding. To date the following progress was made.
YEAR SAPS Funding Availed
SITA Contracted
Switching Centres
Sites Upgrades
2005 to 2008 R325,1m 26 386
2008/2009 R248.3m 272
2009/2010 R518.5m 388
TOTAL R1091.9m 26 1,046
SITA support of SAPS Strategic Projects
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SITA participation on IJS Initiatives SITA has permanent representation on the IJS Board to
address any service delivery and strategic matters. The Integrated Case Docket Management Systems (ICDMS)
redevelopment is central to the SAPS IJS interfaces and project development is on track. The first system functionality will be demonstrated to SAPS management on 10 November 2010.
SITA successfully delivered various interfaces between the SAPS systems and the systems of NPA, Justice and DCS.
The E-Docket interface with the Courts have been tested and the Durban Magisterial Court will be the first implementation.
SITA support of SAPS Strategic Projects
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Implementation of Fingerprint bill Following the Bill review in November 2009, SITA participated
in the IJS/SAPS workshops to do the detail implementation planning.
SAPS continued with business alignment while SITA focussed on the network infrastructure upgrade as enabling mechanism.
Last workshop was held in January 2010 and no further support was requested.
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SAPS Bandwidth SAPS requires an immediate increase in its available
bandwidth on its networks for the E-Docket and Firearms permit system deployments
Although SITA has ample bandwidth available on the SITA NGN, a challenge lies in the integration of such capability
SITA and SAPS is working jointly on a strategy to address business requirements within the next six months.
SAPS Strategic Priorities for 2010/11
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SAPS Crime Investigation Services SAPS will focus strongly on the enablement of its Forensic
Science Laboratory (FSL) and Criminal Record Centres (CRCs) FSL Solutions
SITA has developed various solutions for the FSL domain and it currently in process to establish a procurement mechanism for specialised FSL analysis equipment
SAPS just concluded a contract for the development of a Property Control and Exhibit Management (PCEM) system and SITA will support the integration of such capability into the FSL case management and DNA systems already deployed
SAPS Strategic Priorities for 2010/11
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SAPS Crime Investigation Services Criminal Records Centre (CRC) and Local CRC offices (LCRC)
SITA supports the current CRC and LCRC systems, but such systems require a total renewal and further integration into the Crime Administration Systems (CAS)/Integrated Case Docket Management Systems (ICDMS).
Proposals for the rewrite of the effect have been tabled in 2007 and 2008. The 720 page specifications have been updated to keep tracked of recent developments for the Fingerprint Bill, but no formal tasking have been received as yet for the development to commence.
SITA will shortly table a proposal on how the FSL and CRC/LCRC priorities of SAPS can be support over the next year.
SAPS Strategic Priorities for 2010/11
Thank You
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