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Western Australia Health taps SAP and Deloitte for AU$220m SaaS HR system over 10 years

Now, don't do a Queensland

SAP and Deloitte have together won a deal worth AU$220m ($155m) to implement a new SaaS-based HR system for Western Australia Health.

The public health organisation is looking for a single cloud-based system for employee records, position management, payroll, and rostering.

SAP Australia is set to get AU$53m ($37m) in software subscriptions while Deloitte will get AU$166m ($117m) for the implementation, according to a procurement notice. The contracts are scheduled to be in place until 2032 in the first instance, with the option to extend until 2042.

The design, build, test, and deploy sections of the project are expected to be complete by June 2025, according to reports.

"Having a contemporary [HR system] will have significant benefits for the WA health system and will deliver a key recommendation of the 2019 Sustainable Health Review to improve workforce planning, compliance and reporting capability," a government statement said.

WA Health has already completed a proof-of-concept project and the team hopes to learn from fellow Australian state Queensland. Its healthcare organisation found invoices worth AU$540m were paid late after a finance and supply chain system built on SAP S/4HANA went live.

In September 2020, the Queensland Audit Office found that the ministerial department responsible for operating the state's public health services experienced a troubled launch of the new system, which had been delayed twice and over-ran its budget by AU$33.5m ($23m).

The finance and supply chain system had been set to go live on 1 November 2018 but was put back to January 2019 and eventually launched on 1 August 2019, according to the report.

It said: "While the system operated as implemented, deficiencies in managing staff training and system customisation resulted in staff and vendors of Queensland Health soon encountering problems. Staff and vendors both experienced an adjustment period as they became familiar with S/4HANA." ®

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