La Poste buys SAP services it thought it already had • The Register
The Post Office, a British public company, awarded SAP a contract worth up to £2 million for software services following a misunderstanding over its SAP licenses and service bundles.
A contract award notice published last week shows that the post office – which issues postage stamps, operates the postal service and operates one of Britain’s largest retail networks – has awarded SAP the agreement for implementation, configuration, maintenance and repair services for its SAP SuccessFactors performance management system.
Early in the morning, at eight o’clock‘clock, you can hear the listener, knock, knock, knock
The Post Office said in the award notice that it first purchased SuccessFactors software in 2016 following an audit which found Post Office Limited to be “significantly under-licensed”.
The post office award notice said that SAP, at the time, quoted a single figure of “£2.4 million plus £534,000 annual recurring costs” with “no additional business benefit, except to maintain contractual compliance”.
However, after some “significant negotiations”, Swiss Post secured an offer from SAP to “significantly reduce” its compliance costs and invested in SAP’s SuccessFactors HR Cloud solution.
He then purchased the license from the software reseller SCC through a Crown Commercial Services Framework.
But that was not the end of the Post Office’s troubles.
“We have been experiencing operational issues for the past two years when SAP resigned our Customer Success Manager because this service is not available for an indirect contract, which SAP did not disclose,” the notice said.
“There was a wait for [services-based reseller] SCC will carry out more activities than expected as an SAP partner. This was not possible because thanks to the CCS Frameworks, SCCs are limited to a 1% margin under the reseller agreement.”
As a result, the Post is paying SAP for the services of an individual Customer Success Manager to support the SaaS product delivered directly by SAP under a deal that could be worth £2 million (£2.45 million). dollars).
SAP was given the opportunity to comment on issues raised during procurement.
A Post office spokesperson said: “Like any business, it is essential that we have an effective system in place to manage our HR services. G Cloud and have awarded a new contract to SAP UK limited for a period of two years with an option to extend for one year.”
La Poste’s track record in terms of IT projects is not encouraging. A statutory public inquiry was launched into the Horizon scandal, which saw hundreds of deputy postmasters prosecuted for 15 years over accounting discrepancies later found to be the result of faulty software. Last year, 39 convictions were overturned and up to 400 more could be overturned. ®