The financial impact of Voice over IP on the admnistrative and management systems of the North West Provincial government, South Africa

Abstract

Study Context - Government is continuously faced with the challenge of cutting cost- be it infrastructure, operating, etc. Technology as a business tool is very evident in large organizations today. More and more companies see the value of transporting voice over IP networks to reduce telephone and facsimile costs and to set the stage for advanced multimedia applications. Voice over Internet Protocol (VoIP) is a type of technology that provides the platform for simplification of systems through IP/Convergence (transporting voice, data and video over an IP based network) and thus is a good alternative to cut costs. This study investigates whether VoIP is efficient and effective, specifically focusing on the impact of VoIP on the administrative and management systems in terms of Network efficiency, Simplification and Cost reduction in government. Objectives - The objective of this study is to establish network capabilities and efficiencies in relation to VoIP, the impact of VoIP on the current administrative and management systems run over these networks, and what impact this has on overall service delivery of the NWPG. The study also aims at establishing the cost intent of the convergence between VoIP telephony and traditional telephony. Finally, the study aims at establishing the significance of the cost reduction factor of implementing a VoIP Solution in the NWPG. Design - This study is mainly intrusive because the bulk of the research is through participant observation. The North-West Provincial Governments' network (Westnet) formed the infrastructure base for this study. Network redesign may be considered as an option dependant on the outcomes. The main method of data collection of the study is participant observation through which data was compiled on network traffic, bandwidth usage, and network design/layout of Westnet. Because of the theoretical and technical nature of the study, it must achieve a synergy between these spheres to be practically viable to implement VoIP. Remember, for this research to become a blue print for implementation of VoIP, it must achieve this synergy.

Interventions - Case studies, modeling experiments and other relevant documentation of the NWPG were used for data extraction in conjunction with participant observation (used to gauge network traffic data, current utilization of bandwidth, etc.) over a 4-month period. Financial data was obtained from both the IT Chief Directorate and the Department of Finance over the same period to gauge the cost of the current network infrastructure and the current expenditure. Diagrams were developed and/or adapted during the course of the study to enhance and clarify various Information Communication Technology (ICT) concepts related to VoIP.