UK Pensions Department Awards Sopra Steria a £115 Million Contract Extension for a Legacy ERP Project due to Delays in its Replacement
Delay in UK's Synergy Program: A Journey of Complex Transformation
The Synergy program, a shared service initiative aimed at unifying multiple UK central government departments, has experienced delays due to the intricate nature of delivering business transformation across various departments under tight time constraints.
Current Status
As of March 2024, the Infrastructure and Projects Authority anticipated the full business case to receive approval from HM Treasury by July 2024, with Systems Integrator and ERP procurement on track for contract awards once approved [1]. In September 2024, IBM and Oracle secured a £711 million contract for software and systems integration services [1]. However, the business process services contract, worth approximately £959 million, remains unawarded despite the competition being launched in September 2024 [1].
A senior officer expressed expectations for a fully costed and deliverable integrated plan by summer 2025, including timelines for departments transitioning to Synergy services [1]. In a bid to accommodate the ongoing reliance on legacy systems due to Synergy delays, Sopra Steria was granted an extension contract worth £115 million to maintain critical business services until October 2028 [1].
Reasons for Delay
The main reasons contributing to the delays are:
- The inherent complexity of multi-departmental transformation.
- The need for a comprehensive, integrated, and costed plan, which is still being finalized.
- The business process services procurement not yet completed.
Progress and Future Outlook
The Synergy program is actively making strides in software and systems integration, but the full transition and service rollout remain contingent on finalizing the remaining contracts and integrated delivery plan [1]. Some participating departments, such as the Ministry of Justice, may express frustration over the delays, as they had initially hoped to be on a new system by now.
Despite the challenges, the Synergy program continues to be a significant endeavour aimed at modernizing and streamlining IT services across multiple UK central government departments. The program's full business case is scheduled for HM Treasury approval by July 2024, and with the necessary contracts and plans in place, the Synergy program is poised to bring about a much-needed transformation in the UK's central government IT landscape.
[1] Source: [Link to the original source] (If available)
- The delays in the Synergy program are primarily due to the complex nature of multi-departmental transformation and the need for a comprehensive, integrated, and costed plan.
- IBM and Oracle have been awarded a contract for software and systems integration services, but the business process services contract remains unawarded, contributing to the delays in the Synergy program.
- The Synergy program's full transition and service rollout are contingent on finalizing the remaining contracts and integrated delivery plan, which is set to be approved by the HM Treasury in July 2024.
- The Synergy program, driven by AI, cloud technology, and advanced software, aims to modernize and streamline IT services across multiple UK central government departments, ultimately bringing a much-needed transformation in the UK's central government IT landscape.
