TechOne gets $7M ticket to second Govt shared service hub

TechOne gets $7M ticket to second Govt shared service hub

The new Federal Government deal represents the second such shared service hub to partner with TechnologyOne for its SaaS offering

TechnologyOne’s (ASX:TNE) software-as-a-service (SaaS) offering has seen the software vendor win a $7 million shared service hub deal with the Federal Government’s Department of Industry, Innovation and Science (DIIS).

The DIIS deal represents the second such shared service hub to partner with TechnologyOne, under the Federal Government’s Shared Service Strategy, with the Department of Treasury have previously struck a deal with the publicly-listed software company.

TechnologyOne said that the two shared service hubs are expected to manage more than 40 Federal Government agencies.

“We went to market seeking a flexible ERP solution that would enable us to provide shared service capabilities to other Federal Government agencies,” DIIS chief financial officer, Brad Medland, said.

Now, TechnologyOne’s CEO, Edward Chung, is hopeful that the company will see substantial growth in the coming years from its SaaS offering to State and Federal Governments.

“The Department of Treasury and DIIS have led the way in choosing the only true SaaS multi-solution,” Chung said. "We already have six Federal Government customers on our SaaS solution who benefit from significant reductions in the time, cost and risks associated with large scale enterprise-wide software implementations.”

Earlier this year, the Department of Finance moved to establish a whole-of-government ERP procurement panel as part of the Federal Government’s Shared Services Program.

In September, Finance opened up the doors for local partners to pitch in on its proposed whole-of-government ERP SaaS procurement panel.

TechnologyOne’s multimillion-dollar win comes in the wake of fierce spat between the vendor and one of its big ticket customers, the Brisbane City Council (BCC).

In January, the BCC revealed it would move to renegotiate a large local government systems (LGS) IT project with TechnologyOne after uncovering project delivery issues that could result in a cost blowout of $60 million.

The publicly-listed enterprise software provider quickly returned fire, telling its shareholders that the majority of the project’s estimated costs blowout had been entirely at the hands of the council.

In May, the BCC issued TechnologyOne with a notice to show cause, effectively giving the company 28 days to prove why it should keep the contract.

In July, TechOne warned the BCC it would pursue legal action claiming damages worth $50 million or more over project “delays”.

In August, it was flagged at a council meeting that the potential legal battle between the BCC and TechnologyOne could cost up to $5 million.

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