An evaluation of the process and impact of outsourcing information technology (IT) services by Eastern Cape Treasury Department (ECTD) to the State Information Technology Agency (SITA)

by Mdlokovi, L. R.

Abstract (Summary)
The aim of this research is to evaluate the process and impact of outsourcing information technology (IT) services of Eastern Cape Treasury Department (ECTD) to State Information Technology Agency (SITA).

This research study has been prompted by the fact that the South African Government through the National Department of Public Service and Administration has established SITA with a sole purpose of improving service delivery by all national, provincial and local government departments. The researcher’s concern is whether the relationship between SITA and these departments is working or not.

The research paradigm adopted is a constructivist approach and the ontological position adopted assumed multiple realities. The research method used in this study is the evaluation research method. Key to the research procedure was the fact that four senior officials were interviewed using audio recording, where in two were each chosen from SITA and ECTD. The researcher used document analysis and interviews as a means of collecting data. Separate open-ended questions for SITA and ECTD were structured in such a way that it would be easy to extract themes describing the details of a particular question. The researcher made use of thematic analysis. The theory drive-code development process was key in the research analysis.

ECTD outsourced to SITA the following IT services, namely, provision or maintenance of a private telecommunication network (PTN) or a value-added network (VAN); transversal information systems and its data-processing or associated services; training in IT/IS; application software development; maintenance services for IT software or infrastructure; data-processing or associated services for specific IT applications or systems such as website development; and IT support.

The interviewed officials from ECTD contend that they used the SCM Guide and SITA ACT when pursuing IT outsourcing for projects such as those listed above. One of the key projects outsourced to SITA is the IFMS, which is a project programme of the National Treasury Department working closely with provinces (e.g. ECTD), National Department of Public Service and Administration (NDPSA) and SITA. The IFMS project has been implemented following the SCM guidelines. The key SCM Guide components are demand, acquisition, logistics, and disposal management.

The engagement model used by SITA to guide them on the process of engaging in an IT outsourcing relationship has, according to the officials interviewed, been a success. SITA uses a standard contract wherein other specific contracts receive minor adjustments.

The impact of IT outsourcing has shown increases in customer satisfaction improvement, transformation of government procurement and provisioning practices, appointment of Consultants, interpretation of the Preferential Procurement Policy, promotion of the consistent application of Best Practices, information systems security environment, and improving service delivery.

Bibliographical Information:


School:Rhodes University

School Location:South Africa

Source Type:Master's Thesis

Keywords:investec business school


Date of Publication:01/01/2008

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