Australian Government Department to Replace SAP ECC6 with Workday and ServiceNow

Australia’s Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts is replacing its SAP ECC6 environment with a cloud-based ERP solution centred on Workday and ServiceNow.

The department has engaged Accenture under a three-year, $38.8 million agreement to deliver the program. The engagement is scheduled to run until mid-2029, with the option to extend to mid-2032 if required.

Accenture will act as both systems integrator and software reseller for the program.

A department spokesperson confirmed that the organisation is “moving off SAP altogether” as it replaces its existing ECC6 environment.

“[Accenture] will deliver a cloud-based ERP solution centred on Workday for finance, human resources and payroll functions, and ServiceNow to support service management and workflow capabilities,” the spokesperson said.

The new solution will replace the department’s existing SAP ECC6 environment and provide enterprise-wide capabilities across finance and financial management, human resources, payroll, procurement and related workflows, employee and manager self-service, corporate reporting and analytics, case management, asset management, and work health and safety.

A phased implementation

The ERP program is planned to be delivered in two phases, allowing the department to progressively implement the new solution and support business readiness during the transition.

The initial focus will be on replacing the functionality currently provided by the department’s SAP environment, while additional capabilities available through Workday and ServiceNow may be considered over time.

“Workday and ServiceNow include a range of modern capabilities, including workflow automation, analytics and AI-enabled functionality,” the department spokesperson said.

“The department will assess these capabilities over time in line with business requirements, security considerations, governance arrangements and value-for-money objectives,” the spokesperson added.

The program will be delivered using both Accenture and departmental resources.

“Accenture Australia will be supported by an internal team to deliver the solution and ensure the end product is consistent with departmental requirements and policies,” the spokesperson said.

Replacing ECC6

The project comes as SAP ECC6 approaches its official end-of-life at the end of 2027, although maintenance extensions are available in some circumstances.

The Department of Infrastructure’s program will see its existing SAP ECC6 environment replaced over the coming years, with Workday and ServiceNow forming the basis of its new cloud ERP platform.

The Accenture engagement is currently scheduled to run through to mid-2029, with an extension available through to mid-2032 if required.