Government's SAP ERP modernisation plan marked 'unachievable'

Watchdog says programme lacks 'critical skills and dedicated resources'

The British government's Unity Programme, which seeks to revamp ERP systems in three departments, has been given a red rating and called "undeliverable" due to critical design issues.

The government launched the Shared Service strategy in March 2021, outlining a vision to revamp IT services shared across the Civil Service and to enhance end users' experience.

The £214 million Unity project is part of that goal, and involves collaboration between HM Revenue & Customs (HMRC), the Department for Transport (DfT) and the Department for Levelling Up, Housing, and Communities (DLUHC).

Led by HMRC, the project aims to transform HR, finance and procurement processes across the departments, and to establish a cohesive shared service that prioritises user needs, agility and cost-effectiveness.

However, "the programme...lacks a number of critical skills and dedicated resources, which further puts progress at risk," according to information published by HMRC to support a recent report from the Infrastructure and Project Authority (IPA).

The project also has "a number of key design decisions outstanding," and all three departments must reach an agreement for it to stay on track.

The IPA's report said the successful delivery of Unity currently seems "unachievable".

The IPA serves as the government's centre of expertise for infrastructure and major projects. Positioned at the core of the government, it reports to the Cabinet Office and HM Treasury (HMT).

The IPA operates across various government sectors, providing support for the execution of a wide array of major projects.

The projects watchdog has assigned the Unity Programme a red rating, indicating the presence of potential "major issues with project definition, schedule, budget, quality, and/or benefits delivery." At this stage, these appear to be difficult or unfeasible to manage or resolve.

The red rating could mean a potential re-scoping of the project and a reassessment of its overall viability.

The information HMRC handed to the IPA shows programme costs for the 2022/23 financial year had decreased by 33% compared to the forecast.

That was because the outline business case was not approved until November 2023, significantly later than anticipated, pushing back the programme's delivery phases.

Due to the delayed approval, the appointment of a technology delivery partner was also postponed until Q4 2022, later than initially scheduled.

The programme team was also not expanded until Q4, further delaying the next version of the business case until the 2023/24 year.

As a result, the original plans to spend £3.3 million on a technology delivery partner in 2022/23 could not go ahead.

The project has taken a step to address its skill deficit by appointing Accenture as the delivery partner. The company was awarded an £8.3 million contract in May.

HMRC says the Unity programme has been working with Accenture to establish a decision path and develop a "back-to-amber" plan. The plan has been mutually agreed with the programme board to help navigate and address the project's challenges.

"The programme will be focusing on this plan over the next quarter, to get key decisions agreed, key resources in place and build stakeholder confidence in the plans in advance of moving into the delivery phase," HMRC added.