NSW govt prepares to renegotiate $490m SAP deal

The New South Wales government has extended its main sourcing agreement with German software giant SAP by another year, as it prepares to re-negotiate the contract now estimated to be worth $490 million.

One of the longest-running standing offers in the NSW government, the SAP contract, codenamed C2601, was first signed in March 2008 to procure ERP software products, both perpetual and cloud software licences.

The contract – which was valued at $1.65 billion until it was revised down last year – was slated to expire in March this year, even while the government’s latest attempt to consolidate ERP systems continues.

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