Source URL: https://www.theregister.com/2024/11/18/uk_tax_collector_awards_366/
Source: The Register
Title: UK tax collector inks £366M in ERP deals to get systems into cloud
Feedly Summary: SAP and Deloitte winners in transition from legacy software to SaaS, which includes housing and transport ministries
The UK’s tax collector has awarded contracts worth up to £366 million ($461 million) in an effort to move a cluster of central government departments’ ERP, HR and finance systems to the cloud and upgrade legacy software.…
AI Summary and Description: Yes
Summary: The UK government has awarded significant contracts to move several departments’ enterprise resource planning (ERP), human resources (HR), and finance systems to the cloud, particularly focusing on transitioning from legacy SAP software to SAP’s latest cloud solutions. This development reflects a shift towards modern, centralized services and is expected to result in substantial cost savings and operational efficiencies.
Detailed Description:
The text describes a strategic cloud migration initiative led by the UK’s tax authority, His Majesty’s Customs & Revenue (HMRC), which involves significant investment in upgrading legacy systems and transitioning to a cloud-based infrastructure. Here are the key points:
– **Contract Awards**:
– HMRC has awarded contracts totaling £366 million, primarily to SAP and Deloitte.
– SAP received a £246 million agreement for a SaaS solution over ten years.
– Deloitte’s contract, worth £120 million, focuses on providing technical professional services to support the cloud transition.
– **Unity Program**:
– The initiative is branded as the “Unity” program, targeting three government departments—HMRC, Department for Transport (DfT), and Ministry of Housing—amongst others.
– A centralized function for finance, procurement, HR, and payroll is being designed.
– **Rationale for Cloud Migration**:
– The existing SAP ECC 6.0 systems will cease mainstream support in 2027, making the migration timely and necessary.
– The cloud migration is expected to realize a total saving of approximately £90 million and an estimated £585 million in benefits over a 15-year lifecycle.
– **Risk and Governance**:
– The Infrastructure and Project Authority (IPA) flagged risks associated with the Unity program, highlighting a lack of critical skills and resources.
– A merger with the National Infrastructure Commission aims to strengthen oversight and management of such transformative projects.
– **Future-Proofing**:
– The migration to cloud-based solutions like SAP’s S/4HANA is viewed as essential for long-term operational effectiveness and efficiency.
This initiative is significant given the scale of investment and intended improvement in government operations. Cloud computing practices are essential for modernizing public sector operations, demonstrating a growing trend towards embracing digital transformation across government entities. Security and compliance professionals should monitor these developments closely, as they will set precedents for future public-private partnerships and cloud implementations in regulatory environments.