NZ Government opts for SAP cloud-based HR management

SAP says that use of cloud services for HR management aligns with the Government’s ‘cloud first’ IT strategy

The New Zealand Government, through the Department of Internal Affairs (DIA), has signed an agreement with SAP New Zealand under which SAP can automate management of government human resources ‘from hire to retire’ using the cloud-based SAP SuccessFactors Human Capital Management (HCM) Suite.

SAP says that use of cloud services for HR management aligns with the Government’s ‘cloud first’ IT strategy and will deliver a number of benefits, including estimated cross-government savings of $5 million over a five-year period, and “opportunities to simplify processes and reduce duplication of effort to procure solutions, negotiate and administer contracts, as well as ensure contract compliance.”

However the deal does not automatically shift HR management for all government employees to the SAP system. The DIA has signed a common capability agreement on behalf of government agencies under which they will be able to shift their HR management to the system without needing to undergo a full procurement process.

SAP says it has been contracted to provide core HR, recruiting, on-boarding, performance and goal management, learning management, compensation, succession and development, social collaboration and workforce analytics and planning. These will be provided from the HCM Suite hosted in Sydney.

For the seventh year in succession SAP’s HCM suite has topped the rankings in IDC’s MarketScape Vendor Assessment for Worldwide Integrated Talent Management. IDC said its key strengths included “robust R&D, market momentum, depth of the portfolio, and global reach.”

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