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Auckland Council saves $33 million in renegotiation of SAP agreement

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The Auckland Council Group has renegotiated its strategic partnership with SAP, saving $33 million over the course of its Long-Term Plan, which stretches from 2015-2025.

The group said the next contractual phase of the partnership with SAP will be used by Auckland Council and Auckland Transport, with the offer open to other council-controlled groups should they wish to join in the future. This has resulted in the realignment of legacy council contracts previously held with SAP.

“The Auckland Council Group continues to examine its resources for efficiencies and savings – this outcome is evidence of this,” said Sue Tindal, group chief financial officer, Auckland Council Group.

“Reaffirming our partnership with SAP is one I am delighted with, as it reflects the council’s drive for investment in Auckland’s future, balanced with financial prudence and best value for money. With SAP’s support, the council is enabled to evolve as Auckland’s population does.”

Auckland Council said the cost savings have been achieved as the city of Auckland experiences rapid population growth, while still delivering the planned benefits for residents to enjoy when renewing dog owner licences, paying their rates or library charges online. Self-services already offered on the Auckland Council website will be retained.

“As Auckland Council continues its digital transformation journey, SAP remains committed to this important strategic partnership. We are dedicated to supporting the council to realise efficiencies and savings as the city grows, while also delivering tangible benefits to Aucklanders,” said Graeme Riley, managing director, SAP New Zealand.

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