The State Information Technology Agency (SITA) and arivia.kom say they have entered into negotiations with each other to ensure "their respective entities conform to the greater picture of the country`s consolidation effort".
SITA was formed in April 1999 as part of a consolidation of the IT arms of the Department of Defence, SAPS IT, along with the Department of State Expenditure`s Chief Directorate and the Central Computer Services.
Likewise, arivia.kom was born of the merger between the IT arms of parastatals Eskom, Transnet and Denel, and was launched earlier this year. It delivers IT services to a wide range of industries and market sectors through its three key focus areas: infrastructure business, focused business solutions and eVentures.
"At ministerial level, the consolidation efforts that have manifested in the two State-owned IT entities enjoy the shared understanding of both the Departments of Public Service and Administration, headed by Geraldine Fraser-Moleketi, and Public Enterprises, headed by Jeff Radebe," states a joint statement.
In February, SITA explained its new directive from Cabinet under the new leadership of Colin van Schalkwyk, saying SITA would be restructured into three core divisions.
The first division was to be regulatory, while the other two would be "build and operate" entities focused on the military and civilian IT systems of the government. The last mentioned could, within one to three years, be spun off to compete on an equal basis with private sector companies.
In the latest statement, it appears that SITA will be staying out of the private sector completely and focusing entirely on planning and advice for government, as well as reducing government`s expenditure through value-add IT acquisitions and promoting e-services within the government.
Although final clarity of the fit has not been reached, Colin van Schalkwyk, MD of SITA, and Zeth Malele, CEO of arivia.kom, have already entered into discussions. The two entities say they "do not share industry fears to the effect that SITA and arivia.kom may act at cross-purposes to each other".
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