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Applications

Postal Service seals big SAP deal

Enterprise software maker gets stamp of approval to replace letter carrier's 700,000-employee human resources system.

Enterprise applications specialist SAP said Monday that it won a deal to provide the U.S. Postal Service with a new human resources management system.

The Germany-based software maker said it will completely replace the Postal Service's 25-year-old homegrown human resources system with its MySAP Business Suite package. Financial terms of the deal were not reported, but the government agency ranks among the largest public-sector entities in the world, with an estimated 700,000 workers. SAP said that its professional services division was also hired to oversee the project.

The deal is a noteworthy one for SAP. The company's core market for enterprise resource planning (ERP) software, of which human resources applications are a major element, has slowed, in particular among larger customers. While SAP remains focused on large enterprises, it has also been working hard to move its products downstream into greater numbers of midsize companies.

The Postal Service expects that the new human resources system will greatly improve the way it delivers resources to its workers. In addition, it expects to better manage IT costs related to the massive organization's operations.

"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," Robert Otto, chief technology officer for the Postal Service, said in a statement. "The desired result of the project is to leverage technology to provide more value to our most valuable asset, our employees."

SAP has about 50 postal organizations among its customers worldwide and has also won deals with a number of the largest U.S. government organizations, including the U.S. Army, for which it is building a new procurement system.