SITA Presentation to Portfolio Committee on Police 29 October 2010

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


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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.


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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


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Industry Partners


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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.


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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%



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


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+-(relative to peer)

Desktop Support ServicesDesktop Support Services


Helpdesk ServicesHelpdesk Services


LAN Support ServicesLAN Support Services


WAN Support ServicesWAN Support Services

SITA Pricing Benchmark

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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%



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


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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


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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.


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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


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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.


Thank You

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SITA Presentation to Portfolio Committee on Police 29 October 2010

Documents

Transcript of SITA Presentation to Portfolio Committee on Police 29 October 2010