The Department of Labour (DoL) has, for the past 10-years, been involved in a Public Private Partnership (PPP) and wishes to inform the South African public that this is officially coming to an end as of 30 November 2012. The end of this contract marks a new frontier in Information and Communication Technology (ICT) for the Department through the establishment of a new ICT operating model focussed on building internal capability.
The Department of Labour’s approach going forward is informed by a review of the PPP contract undertaken by KPMG three years ago. This and other investigations culminated in a number of interventions required to close out the PPP contract including the establishment of an ICT Advisory committee and the appointment of Accenture through a deviation process to complete a feasibility study into post-PPP options and provide capacity to manage Siemens’ Exit.
At an operational level, the exit and transfer process has been implemented via a number of established work streams operating under the auspices of the Exit & Transfer Steering Committee that meets regularly. Through this exercise, the Department of Labour has decided to use a multi-faceted approach to its implementation of the new ICT model as the R1.2-billion contract with Siemens comes to a close. This approach includes: retaining all current staff; invoking the cession option; and/or issuing service requests to the industry as required.
The ICT PPP contract was initiated in 2002 to address staff retention issues within the Department as well as to provide access to private sector investment and expertise. Over the 10-year period, Siemens has provided the Department with operational and developmental services but the current PPP model will not meet the organisation’s changing needs in the future.
The PPP was the first partnership in South Africa of its kind and has no doubt encountered many obstacles. The Department has taken note of the lessons learnt through this period and has taken steps to address these issues in its new five-year ICT Strategy and future operating model.
The future ICT operating model is intended to improve the efficiency of the Department including operations within its public entities such as the Unemployment Insurance Fund (UIF), the Compensation Fund (CF) and Sheltered Employment Factories. The new strategy will also assist in making the Department a paperless and environmentally-friendly working environment.
The Department of Labour’s Director-General, Nkosinathi Nhleko, said the announcement today would lay to rest perceptions and misconceptions about the PPP and provide clarity on the future direction of the Department’s ICT plans.
“We recognise the importance of ICT as a tool to ensure that we deliver services to the people in a manner we are designated by the constitution. The move we have chosen is designed to deal with obstacles that have been bedevilling the Department and PPP contract.
“The Department will now be able to build its own capacity to manage internal ICT operations. In designing future ICT needs, we will take into account the dynamics and complexities of the operating environment so as to ensure that these deliver solutions in key areas of operations, branches and the Department’s public entities,” Nhleko said .
The Department of Labour is currently working with Siemens on the Exit and Services transfer project to handover information and services to the Department. The organisation structure is awaiting final approval and PricewaterhouseCoopers has been appointed as transaction advisor to assist the Department in issuing request for proposals and selecting ICT service vendors.
Siemens recently announced 100% sale of its IT Solutions and Services South Africa to EOH. The contract makes provision for a termination support period of up to 12 months which allows for transition and handover. During this period, EOH will provide continuity of ICT services as well as wrap up any outstanding project work.
With the PPP Exit and Transfer nearing completion, the Department will be working to recruit staff, issuing and awarding ICT tenders and the initiating new business projects.
The focus of the tenders issued will not only be on provision of operational services, but also on investment in ICT infrastructure as well as continuation of the Department’s modernisation agenda. This will facilitate the improvement of process turnaround times, reduction of physical documentation and provision of improved access to citizen services through electronic channels. While progress has been made at UIF through the Virtual Office and U-Filing initiatives, it is the intention of the Department to roll out similar technology more widely.
In order to manage this process, the Department has in recent months appointed an internal task team, filled the key ICT leadership positions of Deputy Director-General: Corporate Services and Chief Information Officer and appointed Accenture to provide capacity to manage the transition process. This team is already hard at work and has made significant progress against the planned timelines.
Another positive feature of the new strategy is the pioneering by DoL of an ICT Skills Factory vision. As part of this initiative, the Department will seek to employ qualified individuals in the junior positions allowing them to grow and develop skills in key strategic and operational ICT functions within the organisation. Through the ICT Skills Factory, the Department will work in association with other public sector organisations and ICT industry players to develop relevant skills amongst the new generation of ICT employees.
Going forward, Nhleko said: “we want to ensure and endeavour that we do not find ourselves in a similar situation to that of the PPP. A key focus area in future will be to strengthen governance structures”.
Enquiries:
Page Boikanyo
Cell: 082 809 3195
E-mail: Page.boikanyo@labour.gov.za
DoL on the verge of a new frontier in ICT through a hands-on approach - Labour DG Nkosinathi Nhleko
