India Post looks for consultants on Rs 23,000 million technology spend
India Post plans to invite consultants, such as KPMG International and Ernst & Young, to help the loss-making postal department buy technology solutions, including software applications and computer hardware, as it plans to spend around Rs 23,000 million on technology in a year’s time.
Postal revenues last year were Rs 14,000 million short of the department’s expenses in 2005-06, the latest data available showed.
An “expression of interest” inviting consultants “will be floated in few days’ time”, said a senior official at India Post, who did not wish to be named because the plan had not been finalized yet.
“We have been allocated Rs 23,000 million under the 11th Five Year Plan for computerization,” the official added.
For decades now, the department has been supported by the government in making up losses while running low-priced and inefficient services. A business software known as enterprise resource planning or ERP software, which integrates functions of finance, operations and distribution, is “very compelling for India Post for managing their large network”, said Arvind Mahajan, executive director at a Mumbai unit of KPMG International. “They would need a consultant to help evaluate different vendors for software applications and other services.”
“It will take almost a year for us to procure an ERP solution,” said the India Post official.
As reported in Mint on 15 June, much of the proposed expenditure will be on radio frequency identification or RFID, a new system for tracking shipments and mails; the ERP software, for automating and integrating human resources, marketing and finance operations; a national data centre for creating and updating records; and a national call centre for providing round-the-clock support to all its customers.
“We have already received proposals from companies such as Oracle and SAP,” the posts official said. The postal department plans to float another tender specifying the technology solutions “after it is advised by a consultant about what kind of technology solutions to procure,” the official added.
Senior officials from India’s second largest software company, Infosys Technologies Ltd, have already met the India Post officials for providing application development, maintenance and system integration contract.
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