Accenture will support the roll-out of Inland Revenue's new Oracle-based enterprise support services software (ESS).
In a quarterly performance report to Parliament, IRD said the aim for the new organisation-wide support system was "to make it easier for all of us to do our day to day jobs".
This includes business processes around human resources, finance, procurement and asset management.
The project is also expected to address failings in IRD's procurement processes and technology noted by the Auditor-General last year.
Excluding payroll, the project is budgeted to cost $20.2 million including implementation by Accenture, a spokesperson told Reseller News. The costs are included in IRD's overall business transformation budget, previously approved by government.
"The Oracle Cloud Suite will cover IRD’s ESS business requirements and includes the following Oracle products, human capital management (HCM), enterprise resource planning (ERP) and enterprise performance management (EPM)," the tender for the support partner said.
In June 2018, around 80 people from across Inland Revenue and a some public sector colleagues viewed presentations from two shortlisted vendors.
"We were able to experience the look and feel, and hear about the functions of each system," IRD said. "We selected Oracle as the preferred ESS solution to take through to the negotiation phase of the procurement process."
A release in mid-2019 will be the first of four. These are coordinated to occur alongside IRD's other significant business transformation releases normally scheduled for April each year.
Implementation work was started last September and budgeting and forecasting functionality went live last month, the spokesperson said.
"Our current plan is to complete releases two and three by the end of the year," they said. "In release four we will replace our payroll system. We expect this to be completed by June 2021."
IRD was also testing cloud-based workplace tools, including Microsoft 365 with a combination of desktops, laptops and tablets, the quarterly report said.
"We started a pilot of Microsoft 365 with people in Tauranga in May and we plan to pilot with people in the Bryce Street office in Hamilton in July.
"The pilot will help us understand the support required as we roll out new tool sets. The pilot will also give us more information about how people can work better and faster with the right tools."
At the same time, some business units were working with Stax - IRD's new enterprise content management system.
Release three of the department's new tax engine, START from Fast Enterpises, is planned for April, with the migration of income tax and Working for Families onto new systems and processes.
"It is a significant release as the products in scope will affect most New Zealanders - businesses, individuals and financial institutions," IRD added. "We have undertaken a high level assessment of the impact on customers.
"We are identifying what is required to ensure that affected customers are aware of and ready for the changes being introduced and we are ready to support them as their interactions with us change and as they use new services for the first time."