Germany’s Federal Employment Agency Selects SAP ERP

Major win for SAP Germany’s largest federal authority – the Federal Employment Agency – implements SAP ERP to optimize it’s internal processes. Despite the global economic crisis, this project is proof that strategic investments in IT will help companies weather the economic storm.

Years of IT infrastructure expansion, 48 specialized in-house IT processes for human resources and financial management, numerous interfaces, and large volumes of data redundancy meant that the BA was crying out for a future-ready solution to improve transparency and flexibility.

Following an extensive procurement process in which nearly all well-known software vendors and consulting firms took part, SAP was finally chosen as the general contractor. As a result, the Walldorf-based software group will not only provide the software, but, together with the IT consulting firm Accenture, will also be instrumental in its implementation and operation.

“We needed a reliable financial system to manage our budget of around €41 billion,” said Klaus Vitt, chief information officer, BA. “We selected SAP standard software because of its comprehensive solution portfolio, and because the software architecture is future-ready.”

Gradual implementation

The large-scale project will be implemented in several rollout phases by a project team made up of 200 employees from SAP, Accenture, and BA. By the end of this year, organizational management, human resources, and payroll accounting will run under SAP ERP. SAP ERP Financials is scheduled to go live in 2011.

The industry-specific capabilities that the SAP solutions provide meet the strict specifications that are required for public administrations. The SAP NetWeaver technology platform, SAP enterprise modeling applications, and various additional products for SAP ERP will also be implemented, including payroll and grants management.

This joint project sends a clear message to SAP AG: “The contract with the BA was not just the biggest deal of the past year in our area of business. The BA’s decision to manage its financial management and human resources processes on a standard SAP ERP platform in the future is an extraordinary confirmation that the move away from IT silos has gone all the way to the federal level,” said Ralph-Peter Rembor, head of public services at SAP Germany. “BA is a real pioneer in this area.”

German Federal Employment Agency (BA)

Around 100,000 employees in 176 agencies and 660 branches make the BA Germany’s largest government agency. Its key tasks include:

  • Job and trainee position placement
  • Career counseling and employer counseling
  • Promoting vocational training and continuing education
  • Job creation and retention
  • Paying unemployment compensation and short-term working benefits

The BA also conducts job market and career research; provides job market monitoring and reporting; maintains labor statistics; and pays family benefits.