The decommissioning of shared services in Western Australia has triggered a small boom in Enterprise Resource Planning software purchases, as agencies begin to transition responsibility for their corporate applications back in-house.
Since September 2012, at least 10 public tenders have been issued by WA agencies for ERP solutions, seven of which have been released since the beginning of November.
Tendering is still open to provide a HR/payroll solution, including software licensing, implementation, hosting and support, to the Department of Water and its roughly 500 staff. Tenders close on 24 January 2013.
Separate requests for tender for the provision of an HR/payroll and a finance and procurement solution to the Department of Planning close on 15 January 2012.
Other recent approaches to market have been conducted by:
- The Department of Racing, Gaming and Liquor for a HR/payroll solution including bureau services, implementation, hosting and support;
- The Department of Finance for a program manager for its Program Switch HR, payroll and finance overhaul;
- The Department of Fisheries for the supply, implementation and support of human resource, finance and procurement solutions;
- The Rottnest Island Authority for an ERP System;
- The Department of Regional Development and Lands for implementation and application support services for the Oracle E-Business Suite;
- The Department of Indigenous Affairs for a financial management system; and
- VenuesWest for professional services to plan, design, build, implement, test, transition and provide post implementation support for a finance and procurement platform using the Oracle eBusiness Suite.
Tender respondents are limited to members of WA’s new whole-of-government panel for Financial, Human Resources and Payroll Solutions, which was established in July 2012 to assist government bodies in their transition back to agency-based ERP. The panel is estimated to see $68 million worth of contracts signed over its eight year term.
Premier Colin Barnett announced back in July 2011 that the State’s then eight year-old shared services program would be dismantled as a result of an inquiry by the State’s Economic Regulation Authority which found the program to be grossly over budget and based on an overly optimistic business case.
“The ERA’s analysis indicates that decommissioning the OSS represents the least cost and most certain option for delivering corporate services,” he said in a statement.
According to the WA Department of Finance, 39 agencies were already using the Office of Shared Services’ centralised Oracle eBusiness platform as of February 2012, all of whom will be required to return their corporate services in-house.
The Office of Shared Services currently lists 45 WA agencies as its clients, including Main Roads Western Australia and the Department of the Treasury, neither of which appears to have approached the market for replacement ERP solutions at this stage.
The Department of Regional Development and Lands and the Department of Agriculture and Food have already signed contracts through the whole-of-government finance, HR and payroll solutions panel to support their own Oracle eBusiness Platforms. The Department of Regional Development and Lands has engaged Fusion Applications Consulting to provide implementation and application support services for the Oracle E-Business Suite at a value of just over $1 million. The Department of Agriculture and Food has engaged Lansen Consulting for a similar purpose at a value of $3 million.
The Department of Finance is still in the early stages of its ERP transition, which it has named Project Switch (SoftWare Implementation To Cover HR/Payroll/Finance).
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