IBM Australia has scored a $128 million contract for the second phase of the Department of Defence’s enterprise resource planning (ERP) system overhaul. The department revealed the new two-year deal last week, which more than doubles the total value of the project to date. The contract follows on from an initial $95 million deal – which has since climbed to $112 million – for the design phase of tranche one.
IBM fought off Accenture to secure the coveted system integrator deal in July 2019 following a protracted procurement.
The new ERP system, which is anticipated to cost as much as $1 billion over eight years, is based on SAP’s Defence Forces and Public Security solution and hosted on the S/4 HANA cloud platform.
It will replace more than 500 existing applications currently used for finance, logistics, procurement, engineering, maintenance and estate functions, including up to 90 percent of ERP applications...MORE