Derbyshire County Council has selected IT outsourcer Capgemini to run a project to replace its existing IT infrastructure with new SAP systems.

The £5.6m contract will see Capgemini replace Derbyshire’s older-generation mainframe technology with SAP enterprise-wide systems designed for local authorities. The new systems are expected to go live in April 2010 and will be used by around 8,000 Council workers.

A 25-strong project team from Capgemini IT and other business consultancies will be based on-site at the Council’s headquarters in Matlock to oversee the transformation project. The new systems include financials, procurement, HR, payroll and business intelligence.

Once the project is complete and the systems live, Capgemini will provide application support for a period of 12 months while training the Council’s staff to improve their knowledge of the new technologies.

Derbyshire County Council is hoping to improve communication between different departments, support improved budget and revenue control, enable more informed decision making, identify procurement savings and cut time spent by Council staff in processing and accessing data.

“We are committed to continuous improvement in the way we work, in the services we provide and in making the best use of taxpayers’ money, and the record shows that we have delivered on those commitments year after year. We plan to do even better in the near future and our new IT platform will be key to achieving that aim,” said David Hickman, transformation director at Derbyshire County Council.

The Council is a four star-rated local authority, which is the highest rating available from Audit Commission’s Comprehensive Performance Assessment.

The two sides are also in talks over a new electronic document and records management (EDRM) system, which would integrate with the new SAP systems.

Capgemini’s UK arm, headquartered in Woking, recently secured a contract extension with Tube Lines, the firm responsible for maintenance on a number of London Underground lines, to overhaul its IT infrastructure.