Quebec vehicles agency spent C$245M over budget on SAP ERP it wasn't sure it needed
The Register
February 20, 2026
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A judge-led commission in Quebec has revealed that the Société de l'Assurance Automobile du Québec (SAAQ) spent over C$245 million on an SAP ERP project that was not only over budget but also unnecessary for their digital transformation goals. The report, led by Judge Denis Gallant, found that SAAQ misled the government about the project's true costs and effectiveness, causing significant province-wide disruptions. Initially launched in 2014 with a projected completion date of 2017, the project went live three years later than planned and faced numerous challenges, including integration issues and over-customization.
The commission highlighted that SAAQ was uncertain whether ERP was the right technology for their needs from the start. During early planning, they relied heavily on SAP to determine if an ERP suite would align with their goals. Despite this dependency, the report criticized the internal project team's decision-making process, which lacked thorough analysis of alternative approaches like in-house development or best-of-breed solutions. Ultimately, SAAQ chose SAP as their main software supplier and IBM-owned LGS as the systems integrator, leading to a failed implementation that cost millions and disrupted critical services.
The project's second phase, which required extensive customization of the ERP system, marked the beginning of its financial troubles. Additional scope changes, such as incorporating roadside enforcement processes, further complicated the implementation without proper competition. The commission found that these decisions were influenced by close ties between SAAQ staff and SAP, raising concerns about conflicts of interest and improper procurement practices. Despite SAP's claims of full cooperation with the investigation, the report exposed significant flaws in project management and ethical decision-making.
This case underscores the importance of thorough due diligence and transparent decision-making in tech projects, especially those involving public funds. The lessons learned from SAAQ's failed ERP implementation highlight the risks of over-reliance on vendor relationships and the need for independent analysis when selecting technology solutions. For readers interested in tech, this story serves as a cautionary tale about the potential consequences of misaligned priorities and inadequate project oversight in large-scale digital transformation efforts.
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Originally published on The Register on 2/20/2026