Dept Infrastructure strikes $38.8m Accenture deal to replace SAP

The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts has brought in Accenture to replace its SAP environment with one based on Workday and ServiceNow.

The department last week hired Accenture to “provision … cloud-based ERP [enterprise resource planning] products” in a three-year, $38.8 million deal.

The engagement with Accenture is set to run until mid-2029, although it is extendable to mid-2032, should that be required.

Accenture’s role in the program is both as systems integrator and software reseller.

The goal is to replace the department’s current ERP system, which runs on SAP ECC6, which is officially end-of-life at the end of 2027, although maintenance extensions are possible.

A spokesperson for the department told Digital Nation that the department is moving off SAP altogether.

“[Accenture] will deliver a cloud-based ERP solution centred on Workday for finance, human resources and payroll functions, and ServiceNow to support service management and workflow capabilities,” the spokesperson told Digital Nation.

“The solution will replace the department's existing SAP ECC6 environment providing enterprise-wide capability for finance and financial management, human resources, payroll, procurement and related workflows, employee and manager self-service functions, corporate reporting and analytics, case management, asset management, [and] work, health and safety.”

The ERP program is planned to be delivered in two phases to allow the department to progressively implement new capabilities and support business readiness, the spokesperson said.

It appears the transition will initially be to replicate the functionality of the current system, although the department has an eye on some of the more emerging features and capabilities native to the Workday and ServiceNow platforms, which it could engage if there is a business case to do so.

“Workday and ServiceNow include a range of modern capabilities, including workflow automation, analytics and AI-enabled functionality,” the spokesperson said.

“The department will assess these capabilities over time in line with business requirements, security considerations, governance arrangements and value-for-money objectives.”

The program will run jointly using Accenture and departmental resources.

“Accenture Australia will be supported by an internal team to deliver the solution and ensure the end product is consistent with departmental requirements and policies,” the spokesperson said.