Inland Revenue is seeking proposals for new enterprise support services (ESS) software to replace its current on-premise ERP system, understood to be from SAP.
The system replacement is part of Inland Revenue's $1.7 billion transformation programme.
IRD states in a tender issued this week that the new system should cover business processes for human resources, procurement, finance, enterprise asset management and corporate functions.
Meanwhile, IRD has reported to ministers that it remains on track to implement release two of its new tax engine, START, as planned next month and remaining under budget.
"Business system testing (making sure START works as expected) is now tracking close to schedule," IRD said.
"The first round of scaled business simulation testing (practicing go-live step-by-step, including the migration of data and processes following go-live) and the first mock go-live (a practice run for go-live weekend) have been successfully completed."
Classroom training for staff has also begun and communications and engagement activity is ramping up.
"We are forecasting an under-spend of $25.2 million for operating expenditure and $0.5 million for capital expenditure as at 30 June 2018," IRD reports.
"As at the end of December 2017, actual spend to date is $127.6 million operating expenditure, an under-spend of $16.3 million against budget, and $68.8 million capital expenditure, an under-spend of $5.1 million against budget (excluding contingency)."
As part of the ESS solution, IRD is also seeking design services which may be supplied by the software provider or a different service partner or partners, the tender says.
In addition, IRD says it may also choose to undertake a further request for proposal for an implementation or support service partner or partners.
"We are seeking to adopt software as a service (SaaS) for our ESS solution and will adopt standard business processes with minimal configuration and no customisation," the department specifies.
IRD is seeking to replace its entire existing ESS solution including the systems that underpin human resources, procurement, finance, enterprise asset management and corporate functions with a comprehensive solution with a core ‘system of record’ that provides at least 80 per cent coverage of the business processes within human resources, procurement and finance.
"Our current ESS solution is composed of an on-premise legacy enterprise resource planning (ERP) toolset supported by a number of point solutions that include a range of reporting tools," IRD says.
"Our current assumption is that our payroll solution is in scope for this procurement, however, we are aware that payroll requirements are specific to the New Zealand market therefore a niche payroll solution may be required in addition to the ESS solution."
The successful bidder will have "skin in the game" and follow a "no surprises approach" to the engagement, IRD says.
Furthermore, they also have to demonstrate "proven expertise" in delivering a software-as-a-service (SaaS) solution in New Zealand and/or Australia,
"They must also be able to mobilise to deliver the new system within an aggressive deployment timeline, bringing experience and innovation for a successful outcome," IRD says.
"We are seeking an ESS solution that uses pre-configured leading practice implementation templates to enable rapid implementation, adoption and benefits realisation. We are expecting a high degree of business process automation and straight-through processing."
Last year, Reseller News reported that Accenture was the largest contractor on the transformation project, receiving $33 million in the ten months to April 2017, shading Fast Enterprises, the US company that develops the software that will underpin IRD’s replacement of its 30-year-old FIRST mainframe system.