The UK government has allocated up to £366 million ($461 million) to modernize legacy software across various central authority departments, with a focus on transitioning key ERP, HR, and finance systems to the cloud.
As reported by , SAP has signed a £246 million ($310 million) settlement with His Majesty’s Customs & Income (HMRC) to supply cloud-based software-as-a-service (SaaS) over a ten-year interval. Meanwhile, Deloitte has secured a five-year contract worth approximately £120 million ($151 million) to provide expert services for a similar initiative.
Unity cluster transformation
The contracts form a key component of the Unity programme, bringing together HMRC, the Department for Transport (DfT), and the Ministry of Housing, Communities and Local Government (MHCLG) in a collaborative undertaking. The initiative aims to seamlessly transition on-premise SAP ERP ECC 6.0 capabilities to SAP’s latest cloud-based platform, facilitating a streamlined and efficient migration process. Accordingly, this system aims to consolidate financial, procurement, human resources, and payroll processes into a cohesive, shared corporate framework, as specified in the contractual agreement.
The Unity program aims to establish standardized procedures across participating departments, as well as build a scalable system capable of meeting evolving needs.
As Jim Harra, HMRC’s Chief Government, underscored the fiscal advantages of a collaborative approach. Last year, it was reported that the switch to cloud-based SaaS solutions like SAP S/4HANA would result in approximately £90 million ($113 million) in savings compared to individual department-led upgrades. As SAP ECC 6.0 approaches the end of its support lifecycle, slated to lose mainstream support by 2027, the Unity cluster proactively migrates away from legacy techniques, thereby avoiding costly interim fixes and securing long-term value for the government.
As operations begin, the reengineered shared companies are expected to yield benefits totalling £585 million ($738 million) over a 15-year period, providing a substantial return on investment.
Deloitte will spearhead the technical transformation and harmonize techniques to tackle the pressing demands of integrating multiple departments seamlessly. SAP is set to offer a Software as a Service (SaaS) platform, enabling seamless access to shared resources across payroll, procurement, human resources, and financial services.
Challenges and oversight
Despite its impressive scope and touted benefits, the Unity project remains under scrutiny. By December, the program had been classified as a “high-risk” initiative by the Infrastructure and Challenges Authority, an independent body responsible for assessing major projects, which identified potential gaps in critical resources and expertise that could impede progress.
The UK’s Infrastructure Planning Commission is undergoing restructuring, with a proposed merger with the National Infrastructure Commission to form the National Infrastructure and Service Transformation Authority. Despite ongoing efforts, updates on the IPA’s annual report for 2023-24 remain pending.
The implementation of Unity in the UK authorities’s digital transformation journey marks a significant milestone, poised to deliver streamlined procedures and substantial financial value through the application of cloud-based solutions. By harmonizing departmental efforts and embracing Software as a Service (SaaS), the initiative sets the stage for a more environmentally sustainable public sector.
