A cluster of UK government departments has chosen Workday as its new HR and finance software provider, shifting away from established vendors like Oracle and Microsoft.
The “Matrix” cluster, consisting of central government departments and arm’s length bodies, aims to modernize its ERP systems and improve shared services with this software update.
Cognizant has been selected as the systems integrator to oversee the implementation. According to a procurement notice from the Department for Science, Innovation & Technology (DSIT), the total contract value for both vendors could reach up to £144.3 million.
The Workday software contract is expected to last 10 years, with an option for a two-year extension, while the systems integration deal is set for an initial five-year term with a possible 24-month extension.
The procurement initially estimated the total project could be worth as much as £215.6 million. Departments involved in the Matrix cluster now include the Cabinet Office, DSIT, the Department for Energy Security and Net Zero, the Department for Culture, Media and Sport, the Department for Business and Trade, the Attorney General’s Office, the Department for Education, the Department of Health and Social Care, HM Treasury, and 20 arms-length bodies such as the UK Space Agency.
This decision marks a significant transition from the ERP and HR systems currently in use. Oracle systems were previously employed by HM Treasury, the Attorney General’s Office, and others, while Microsoft and iTrent were used in departments like the Department for Education and the Department for Health and Social Care.
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The new system aims to unify and streamline the HR and finance operations across these departments, supporting approximately 48,000 users and replacing 15 instances of nine different software systems.
Alex Chisholm, the civil service’s permanent secretary and chief operating officer, noted in a January 2023 briefing that the Matrix bundle was the “trickiest” of the government’s five shared services initiatives. However, he expressed optimism about the project’s progress, citing the departments’ mutual commitment to its success.
As the government works to standardize HR and finance systems, the success of this large-scale integration will be closely watched.
