Government writes-off £56m ERP project

Ministry of Justice makes a U-turn on multi-million pound IT contracts

Government

The Ministry of Justice (MoJ) has pulled out of its enterprise resource planning (ERP) deal with Steria, writing off 56 million in costs.

The contract was handed to the multinational IT firm in 2011, along with 20 million in fees. The new system was slated to be released by spring 2013 for around 80,000 users.

Other IT firms were handed lucrative contracts as part of the government's shared services scheme, including Accenture and Savvis.

The MoJ has admitted, however, that roughly half of the 100 million they spent on the scheme will have to be written off.

Accounts for 2013/2014, published last week, dictated that "due to the decision to move to an outsourced solution, certain elements of in-house programme expenditure constitute redundant development expenditure which.

"The majority of our investment has gone on 60m of assets and infrastructure which can be used by the new shared services scheme," a MoJ spokesperson added.

The shared services program was labelled as "unachievable" by the Major Projects Authority, meaning the initiative has "major issues which at this stage do not appear to be manageable or resolvable."

The abandonment of the ERP scheme and its multi-million pound cost is a result of the MoJ deciding to outsource its back-office services.

The company it will be outsourcing to Shared Services Connected is a joint venture between the Cabinet Office and the same supplier it contracted to deliver the ERP, Steria.

Implementation of the new project will start in the autumn. None of the work that Steria had already achieved in the previous ERP contract will be used in the new outsourcing programme.

The development will also see three offices and 500 jobs lost, something MoJ employees have gone on strike to protest.

Featured Resources

The ultimate law enforcement agency guide to going mobile

Best practices for implementing a mobile device program

Free download

The business value of Red Hat OpenShift

Platform cost savings, ROI, and the challenges and opportunities of Red Hat OpenShift

Free download

Managing security and risk across the IT supply chain: A practical approach

Best practices for IT supply chain security

Free download

Digital remote monitoring and dispatch services’ impact on edge computing and data centres

Seven trends redefining remote monitoring and field service dispatch service requirements

Free download

Most Popular

Best Linux distros 2021
operating systems

Best Linux distros 2021

11 Oct 2021
Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans
Laptops

Apple MacBook Pro 15in vs Dell XPS 15: Clash of the titans

11 Oct 2021
Windows 11 has problems with Oracle VirtualBox
Microsoft Windows

Windows 11 has problems with Oracle VirtualBox

5 Oct 2021