ATP, the Danish pensions and benefits administration organisation which runs the huge ATP pension scheme, has awarded a large IT contract to German software group SAP, which will take over some tasks from KMD.

ATP announced this morning that it signed an implementation, licence and operating agreement with SAP shortly before Christmas.

The six-year agreement, which can be extended for a further two years, has a potential value of around DKK340m (€45.6m), and was signed after a public tender round in the Danish public procurement system SKI, ATP said.

The deal meant the German firm would be “a strategic partner and operating supplier for the SAP platform, which forms a large part of the important and secure tech foundation under the ATP Group as a whole, and for significant areas in the administration business”, ATP said.

“The SAP solutions are currently operated by KMD,” said the Copenhagen-based manager of the DKK684bn statutory pension scheme ATP Lifelong Pension.

Haktan Bulut, ATP’s chief information and technology officer, said: “As part of ATP’s work to be a leading digitisation house that effectively ensures Danes have the most welfare for the money, we are happy that we have succeeded in landing a very good agreement on the operation and foundation for the further development of our SAP systems.”

ATP said that in the future it would use SAP RISE Private Cloud Edition as support in the administration of several schemes and services as well as for its cross-group processes.

Under the agreement, it said, it would also continue migrating of its current SAP solutions to SAP S/4HANA “and other future-proof technology” based on SAP cloud services.

“Fundamentally, it is an expression of timely care that we are making sure ATP will be resting on a secure foundation in the future too – which makes it possible for us to implement new benefit schemes and changes in legislation,” Bulut said about the migration process, which is starting this spring.

ATP has had a long relationship with KMD, which was formed in the 1970s from the computer departments of Danish local authorities, and acquired by Japanese tech giant NEC in 2019.

Between 2017 and 2020 ATP had a high-profile dispute with KMD over delays to the service promised, which ended up in court.

A spokesman for ATP told IPE that although its capacity agreement with KMD runs until spring 2026, it had to launch a tender process for the new tasks last autumn since it was not possible to stick with the existing set-up.

Unlike SAP, he said, KMD did not bid on the task.

While the KMD agreement runs for another two years, the spokesman was unable to say how much business it still had with the Danish IT firm.

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