Price tag for troubled SAP project will skyrocket to nearly $1 billion, audit says

03.10.2014
The cost of finishing a massive SAP software overhaul at a New York gas utility will rise to nearly US$1 billion from an original estimate of $383.8 million, a newly released audit report has found.

National Grid's SAPSAP upgrade went live in November 2012, nearly simultaneously with Hurricane Sandy, the massive storm that ravaged the East Coast. Alles zu SAP auf CIO.de

Immediately upon the go-live, the SAP system was wracked with issues, particularly related to payroll, with the chaos wrought by Sandy and the subsequent cleanup effort only exacerbating the situation.

National Grid ended up bringing in 450 additional contractors to work on the payroll problems, along with 400 to help out with issues related to supply chain and financial closes, according to the audit, which is dated July 25 but was released this week by the New York Public Service Commission.

Now the total cost for the project through the utility's fiscal 2015 is expected to be $945.1 million, the audit states. The system, which replaced multiple OracleOracle systems at National Grid, was supposed to be stabilized as of September, with updates to bring various modules up to current versions completed by the end of this year. Alles zu Oracle auf CIO.de

The audit goes into significant detail about the root causes for the implementation's woes.

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