Perkeso explains why it costs millions of ringgits to change IT systems
Perkeso explains why it costs millions of ringgits to change information technology systems. Report from -Petaling Jaya
The Social Security Organization (iPERKESO) is alleged to have spent hundreds of millions of dollars to fix ongoing problems related to IT systems.
“So much money is being spent on (replacing) the system by system. SOCSO still does not have a suitable, user-friendly system, ”a source familiar with SOCSO operations told FMT.
The source said the problem started after SOCSO appointed a private company in 2010 to develop an IT module 17 module known as SOS Information Technology Automation Reformation (Smart) to replace the CORE system.
He said the Smart that was supposed to be operational in July 2013 was delayed and finally only 3 of the 17 modules were deployed and used.
In 2015, Smart was eliminated and two new systems were introduced – ASSIST and iPERKESO.
The source said the company behind the Smart was paid about RM100 million for their work, including delivering software and hardware.
“There are no serious issues with the Smart,” he said, adding that there were concerns in contract offerings to develop the new system.
“The cost of ASSIST and iPERKESO is more expensive than Smart, though its scope is less than what is expected of the system.”
He said that unlike iPERKESO, ASSIST was “not user friendly” as SOCSO was aware after receiving complaints from his contributors.
However, iPERKESO was canceled and replaced by another system called “Matrix” last year.
Socio when contacted said that developing a great system with “technology readiness” to handle millions of high-cost accounts.
Its Chief Strategy and Transformation Officer Edmund Cheong said it needed to take into account the cost of support and maintenance.
He said Smart had limited functionality even though its infrastructure was still in use today.
He said a detailed assessment showed that Smart removal could reduce the risk of loss, if Perkeso paid for a system that couldn’t function fully.
He confirmed Perkeso already paid for the Smart system.
He also confirmed that the ASSIST system was offered through direct negotiations as it was in line with the procurement manuals based on the Ministry of Finance guidelines.
About iPERKESO, Cheong said it was a corporate social responsibility project and was not offered through any procurement or direct negotiation process.
He said the combined costs of ASSIST and iPERKESO did not exceed RM250 million.
He said ASSIST has continued to improve and has been making progress since 2018.
He said the wait time was shorter for employers to do their business now.
Cheong said the “Matrix” system is not a replacement for iPERKESO and was developed to meet the requirements of iPERKESO the Occupational Social Security Act 2017 (Act 789).
“It has different business features because Act 789 is designed to meet the needs of gig economy workers.”
He said the Matrix had spent RM3.4 million including maintenance with its purchase in compliance with the SOCSO acquisition manual and was scrutinized by its board of directors.