The formation of Sita (the State IT Agency) will benefit all IT players that are involved in governmental contracts, as well as the public, says interim Sita MD JC van Niekerk.
Sita was quietly launched on 1 April after allegations last year that the company is unconstitutional. Following approval of the Sita act by parliament, the group, consisting of predecessors InfoPlan, the Central Computer Services (CCS) and the IT department of the SA Police Service, was incorporated under the Companies Act. The Sita act makes it possible for the State to be the sole shareholder in the new company, and can also be used to except Sita from other stipulations of the Companies Act, at the request of the Minister of Public Service and Administration.
"Sita is not unconstitutional, and everything is going as planned," says Van Niekerk. He adds that potential problems were nothing but phantoms caused by misinformation, and predicts double-digit percentage savings for the government as a result of operations.
According to the Sita Act, the company may only provide services, training and systems to departments and organs of state, and cannot compete in the private sector. Van Niekerk says the private sector can only benefit from the new structure. "Many companies have already expressed their satisfaction," he told a press conference, referring to future outsourcing. "They like to have a knowledgeable buyer."
Van Niekerk estimates that the formation of Sita will cost the taxpayer R40 million initially, but that the amount will be recovered within six months of normal operations. It is expected that the company will be self-sustaining, although a line of credit from the State will remain open.
All government departments will have to merge their IT departments with Sita in a three to five year time period, after which the company will be the sole provider of services. No retrenchments have been affected to date, and none are expected. "Sita was partly formed because of the severe shortage of skills in this sector, and there are no plans to fire anyone," Van Niekerk says.
The benefit to the public will be shorter queues and better service through system interoperability. "A good example would be a change of address," says Van Niekerk. "The ideal is that you have to change it with only one department, and that the system automatically updates that and spreads it around, which would save you a lot of time and trouble. To achieve that is one of our goals." He believes this vision could be attained within five years.
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