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SITA announces R2b outsourcing plan

Johannesburg, 28 Feb 2003

The State IT Agency (SITA) has announced a plan that will allow the public sector to pay for desktop hardware, and maintenance services on a usage basis.

The potential procurement value of the Seat Management programme will be close to R2 billion, says SITA CEO Ken Modise.

Modise says Seat Management refers to the outsourcing of desktop computers and the related software, hardware, maintenance and help desk support.

The Seat Management programme will enable the public sector to pay for desktop hardware, software and maintenance services on a usage basis, with the ability to regularly upgrade and receive , support and training as part of a service level agreement.

"In essence, with per-seat payments, government will purchase the right to use the vendor's equipment and resources, while the vendor owns and is responsible for its upkeep."

Modise says the key ingredient of Seat Management is performance-based service delivery at a fixed price. Departments can be provided with a menu of services from which to choose, with minimum standards set out for technical thresholds and refreshment cycles.

"Seat Management will work no differently from the current acquisition model, except that users will only pay for what they use. It provides predictable and budgetable financial figures and therefore curbs rising IT support costs while saving money through mass buying-power and performance-based contracts."

SITA will act on behalf of government departments within the procurement process, and this is expected to provide significant cost savings. Modise says end-user profiling will ensure that different levels of users are charged different payment models according to usage requirements.

"For example, a computer will come loaded with an operating system, such as Windows 2000 Professional, standard Microsoft Office Suite, Norton Antivirus, and remote monitoring software. End-users may or may not want help desk support, and that can be included in the contract."

Despite difficult economic conditions, 43% of respondents to the 2002 South African IT Services User Requirements Study indicated they are planning to increase the amount they spend with external service providers.

Modise says programmes can also be broader in scope.

"They can include such things as software licence management, services, communications services, remote control of desktops and IT staff augmentation."

He says the benefits of Seat Management include better asset management and asset tracking, ensuring a more accurate measure of what a department has and what it needs to replace. It will also provide a better measurement of total cost of ownership.

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