The UK government has allocated up to £366 million ($461 million) to update legacy software in various central government departments by transitioning key ERP, HR, and finance systems to the cloud.
In a recent report by The Register, it was revealed that SAP has secured a £246 million ($310 million) contract with His Majesty’s Customs & Revenue (HMRC) to provide cloud-based software-as-a-service (SaaS) over a ten-year period. Additionally, Deloitte has been selected to deliver professional services for the same project for up to £120 million ($151 million) over a five-year term.
This initiative, known as the Unity program, aims to replace on-premises SAP ERP (ECC 6.0) systems with SAP’s latest cloud-based platform across HMRC, the Department for Transport (DfT), and the Ministry of Housing, Communities and Local Government (MHCLG). The goal is to centralize finance, procurement, HR, and payroll systems into a shared services model, implementing standardized processes and building a scalable system to meet future needs.
By moving away from legacy systems and towards cloud-based solutions like SAP S/4HANA, the Unity cluster anticipates significant cost savings and long-term value. Once operational, the re-engineered shared services are expected to deliver benefits estimated at £585 million ($738 million) over 15 years.
Despite its potential benefits, the Unity program has faced challenges and scrutiny. The Infrastructure and Project Authority (IPA) has rated it as a “red” risk due to potential deficiencies in critical resources and skills. The IPA itself is undergoing changes, planning to merge with the National Infrastructure Commission to form the National Infrastructure and Service Transformation Authority.
Overall, the Unity program represents a major step in the UK government’s digital transformation journey, promising efficiency and cost savings through cloud technology. By aligning departmental efforts and embracing SaaS, the initiative paves the way for a more streamlined public sector.
(Photo by Unsplash)
Tags: cloud, cloud migration, SaaS, SAP
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