West Sussex’s Oracle rollout pushed back again as costs balloon 15 times

Steven

West Sussex’s Oracle rollout pushed back again as costs balloon 15 times

Summary

West Sussex County Council has delayed the implementation of Oracle Fusion for HR and payroll to October 2026, pushing the project back another six months. The move comes after expected costs rose from an initial estimate of £2.6m in 2019 to an estimated total of around £41m, and after a series of contractual and governance problems.

The rollout — intended to replace an ageing SAP system — affects more than 20,000 users, including school staff and term-time employees. Funding for the overrun includes capital receipts from asset sales, and previous phases already consumed about £14.07m. The current approved completion budget is roughly £27.048m.

Key Points

  • Original 2019 estimate: £2.6m; present total estimated cost: ~£41m (about 15× the original).
  • Go-live for HR/payroll moved from April 2026 to October 2026; project was originally due in 2021.
  • The programme impacts over 20,000 users — payroll accuracy and stability for schools is a key concern.
  • Funding includes capital receipts from asset sales; planned receipts for 2025/26 rise to £12m (from £4m the year prior).
  • DXC was the systems integrator; its contract was terminated in Sept 2023 after being paid ~£6.6m (≈50% above original contract price).
  • Auditors (EY) highlighted weaknesses in budgeting, governance and risk management for the programme.
  • Cost breakdown cited by the council: £14.07m already spent in earlier phases + £27.048m approved to finish the programme.

Context and relevance

This is a notable example of a large local-authority IT transformation running into classic ERP pitfalls: escalating scope and cost, supplier issues, weak governance, and reliance on one-off funding sources such as asset sales. For those tracking public-sector IT, procurement reform, or risk in ERP migrations, West Sussex is a cautionary case study — especially given the direct impact on payroll for school staff and other term-time employees.

Why should I read this?

Short answer: if you care about public money, payrolls or how big IT projects go sideways, this is worth a skim. It’s a neat, painful snapshot of how an ERP swap can balloon — and who ends up holding the bill (spoiler: the council and taxpayers).

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/03/16/west_sussex_oracle/