The challenge faced by the Société d’assurance automobile du Québec (SAAQ) in implementing the SAP software for its SAAQclic project has led to significant cost overruns. Michel Dumas, former CEO of LGS, the IBM subsidiary responsible for the project, revealed that the generic SAP software was ill-suited for the complex needs of the SAAQ, requiring extensive modifications.
Dumas expressed that the standard SAP module was designed for simpler tasks and not tailored for the specific operations of SAAQ. He highlighted the need for major adjustments, suggesting that developing a custom module from scratch would have been a better approach.
Having experienced similar challenges in the past with public sector projects, Dumas emphasized the stark differences between private sector requirements and those of public organizations. He pointed out that implementing commercial software packages within the regulatory frameworks of public entities poses unique challenges.
The discussions at the Gallant Commission also shed light on the dispute resolution process between SAAQ and LGS, with the spotlight on cost overruns and delays. Dumas acknowledged IBM’s (LGS) responsibility in the overruns, attributing part of the costs to the company. However, he noted that SAAQ’s decision-making authority meant that it ultimately bore full responsibility for the project outcomes.
The escalating costs of the project, marked by a significant increase in work hours and expenses, were primarily attributed to the impacts of COVID-19. The unforeseen circumstances necessitated a reorganization of work processes and project timelines, leading to a substantial rise in project costs.
