The Inside Local Government article ‘Don’t choose complication: What local government ERP upgrades are getting wrong‘, features a report, commissioned by TechnologyOne and authored by IBRS, that analyses 23 real-world core system upgrades to identify why many local government ERP programs fail while others succeed. The research reveals a counterintuitive finding: a heavy reliance on tier 1 consulting firms is the single factor most closely correlated with poor outcomes, often leading to programs that run for years, exceed budgets, and delay value. These failing projects are typically characterised by exhaustive planning phases that prioritise documenting existing, outdated processes rather than simplifying them. As Dr Joseph Sweeney explains: “Relying heavily on tier 1 consultants introduces delays for two reasons: there is little or no imperative to minimise effort and reduce time to value for the client because of their time and material pricing model, and it introduces coordination challenges”.
In contrast, successful upgrades maintain tight scope control, retain internal ownership, and use external specialists only for targeted tasks. One council example showed that an internally led team of six could deliver a SaaS migration for approximately $2 million, eventually allowing the organisation to absorb growth without increasing headcount through digitised field operations. The IBRS findings emphasise that a strong in-house team is essential for efficiency, as Dr Sweeney notes: “In contrast, a strong in-house team leading the effort expedites the process”. To avoid the ‘complexity trap’, the report recommends adopting delivery models like ‘SaaS+’, which align incentives toward faster time-to-value and provide a single accountable partner rather than open-ended time-and-materials contracts.
