US Postal service awards $35m deal to SAP

By : |August 23, 2004 0

FRANKFURT: Germany’s SAP has won a contract to supply and install human resources software to help the U.S. Postal Service manage its staff of about 700,000, said SAP.

The German software giant will supply its mySAP Business Suite software to run on its flagship Netweaver platform, replacing a 25-year-old system at the postal service, it said in a statement.

The work includes a consulting contract worth $21 million and a license contract worth $14 million, with a standard maintenance agreement, a spokeswoman for the U.S. Postal Service said.

SAP, which competes with U.S. firms such as Oracle and PeopleSoft in the business software market, makes one-quarter of its sales in the United States, where it increased its market share to 37 percent by the end of June.

“This project will enable us to modernize and centralize our human capital management capabilities and help us provide improved access to information for our employees through an integrated IT platform,” the postal service’s Chief Technology Officer, Robert L. Otto said in the statement.

The software will also provide management with the flexibility to manage and control costs, he added.

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