Finnish State Treasury builds extensive information system for the whole state administration with support from Logica
Finland begins with the implementation of an extensive internal information system for the whole of its state administration. The project is one of the largest information system projects within the public administration in Finland and will help the state to improve the handling of the financial and personnel administration. The aim is for one single system to manage the functionalities of the financial and personnel administration in all the government agencies. The State Treasury, which is responsible for the implementation of the project, and Logica, the winner of the procurement competition, signed the contract for the system delivery on 30 September 2008. The overall value of the four year project is approximately 50 million Euros with Logica’s share being approximately 25 million Euros.
According to the current plans, three pilot agencies will be the first to adopt the centralised system in 2010. The Ministry of Interior and all the agencies within its administrative branch will adopt the system in 2011. The project is then supposed to be extended to the rest of the state administration from 2012 until 2014. When the extension is fully implemented, the new information system on financial and personnel administration will cover all the state agencies (excluding universities), and will have approximately 90,000 end users which makes this project one of the largest information system projects within the public administration in Finland.
Mikko Kangaspunta, Head of Division at the State Treasury, explains: “At the moment, the units of the state administration are using financial and personnel information systems they have acquired themselves. We will develop a common information system solution and shared processes of working across all agencies and service centres with the objective of achieving significant savings in the long run.”
The State Treasury is responsible for the implementation and management of the centralised system and will continue so after the implementation has been completed.
The requirements of the state productivity programme
The procurement of a new information system was initiated as a result of the productivity programme of the state, which builds on the fact that approximately 40 per cent of the staff currently working at the financial and personnel administration will retire in the course of the next ten years. At the same time, the requirements regarding productivity of operations will remain high. Based on these factors, a common operations model for the financial and personnel administration within the whole state administration will be created. The system will cover all joint processes, concepts and information contents of the agencies and service centres.
Timo Laitinen, the Director General of the State Treasury, comments: “During the past years, we have increased the productivity of the financial and personnel administration of the state by establishing service centres, from which the state units purchase the management of core functions of the financial and personnel administration. The next step in the process of improving productivity and service capabilities is the development of this common information system solution.”
Logica enables the change
Logica, the leading IT and business services company, has been selected as the supplier of the system. Since the project is one of the most extensive information system projects within public administration in Finland, the success depends on a close co-operation between the different parties in the project, as well as on strong project and change management capabilities.
Heikki Nikku, CEO at Logica in Finland, comments: “Logica has a long and versatile experience of working together with different parts of the public sector. We have implemented many significant system projects with the State Treasury during the past years, and we are proud that we have been selected as a trusted partner for such an important project."
Logica’s system solution for this project is based on SAP technology and on Logica’s payroll administration software.
“We are in a very good position to implement this project as we are familiar with the specific characteristics of the accounting offices’ financial and personnel administration, and we are also the central supplier of the current systems", Kimmo Koivisto, Managing Director at Logica in Finland, emphasises. “We have comprehensive knowledge of implementing SAP solutions, and our international team of SAP experts is 3,300 persons strong. We will leverage our international expertise when implementing the system, and we will also make use of our capabilities and resources in lower-cost countries.