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IT majors vie for UN ERP project

By SiliconIndia   |   Friday, 25 September 2009, 02:51 Hrs
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IT majors vie for UN ERP project
Bangalore: A key enterprise resource planning (ERP) project of the United Nations (UN), named Umoja is gaining the attention of Indian IT majors and other multinational IT firms. While software major SAP has already won the contract for the ERP software, the UN will start inviting bids for the system integration and services, estimated to be worth up to $300 million, early next year.

The UN is targeting savings of up to $770 million in efficiencies and productivity gains over the next few years through implementation of ERP, reports The Economic Times. "This is an important project for the UN, especially since it is aimed at transforming all its processes. While a blueprint for the roll-out is not yet ready, discussions with many consultants and potential vendors have started," said an official of one of the firms involved with the project.

For tech firms such as IBM, Tata Consultancy Services (TCS), Infosys and Wipro, apart from other European suppliers, the project will bring a lot of visibility, apart from lucrative services business, which can be almost 3-8 times of the software licensing fee.

Enterprise software experts say that the UN goes through a very rigorous procurement process. "Like other public sector procurement processes, the UN may have selected SAP, but they still would have to negotiate terms," said R Ray Wang, Partner, Enterprise Strategy with California-based Altimeter Group. Umoja, which is Swahili for 'unity', will help the UN automate and integrate its supply chains, data management, human resources, finance and central support services.

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