The Treasury has signed a $5.8 million contract with Technology One (ASX:TNE) which will see the vendor’s software-as-a-service (SaaS) offering replace SAP software.
Treasury business services division head Peter Alexander said that over the past 18 months, the Department of Finance has conducted a review of ERP systems used across all federal government agencies. The review is designed to consolidate and standardise business processes.
“We went to market on the back of this review, seeking a flexible ERP solution that would enable us to provide shared service capabilities to other federal government agencies,” he said in a statement.
“Under the SaaS model, Technology One takes responsibility for running the software in a high performing, reliable and secure manner. We no longer have to worry about the complexity of updating the software or infrastructure, and can instead focus on our core operations.”
The OneGovernment offering will replace Treasury’s current SAP software, and will be made available for other government departments to use under Treasury’s shared services arrangement. Approximately 15 government departments are expected to take advantage of this shared service over the next three years.
The Australian Bureau of Statistics (ABS) will be the first department to come on board, implementing the product alongside Treasury. Both departments are expected to be live by mid-2016.
In the budget the government revealed it was seeking to save $31.4 million<span class="redactor-invisible-space"> through ERP consolidation across federal agencies.