The ICT Network considered two recently released reports of the JIU, one on a common payroll system and another on the use of open source software, both of which have a significant impact on ICT operations throughout the system. The central point of the JIU Report on common payroll solutions was a case for implementing, over time, a shared payroll function, and indicated that this was closely linked to the development of a common ERP system for the United Nations system.

The Network agreed that the JIU recommendations must be seen against the background of the relative costs and benefits, and must contain a clear business case for moving to a unified payroll system. However, the ICT Network believes that, as presented by the JIU, the business case was not self-evident since organizations have invested extensively, and some very recently, in major ERP systems, which include payroll components, and that consideration must be given to these sunk costs. Furthermore, the Network felt the JIU confused the issues of a centralized payroll and a common payroll, where the former is a payroll system operated by a single entity while the latter would be a common payroll system operated by each agency. The Network agreed that developing a centralized or a common payroll system first required a simplification and a unification of different organizational and management practices in use across the UN system, which the JIU report did not fully address. In addition, the Network felt the JIU presented a technological simplification of the problem, and the business case would benefit from the involvement of the FB and HR Networks. Nevertheless, the network recognized that the convergence among the agencies of entitlements management would form the basis of a common payroll system down the line and that there could be opportunities for synergy and economies of payroll activity if it was centralized with one provider.

The second JIU report considered by the Network concerned the use of Open Source Software within the UN System. The network noted one of the criticisms by the JIU – that the ICT Network did not recognise open source software use as a priority – but felt that this does not sufficiently acknowledge the contribution that OSS currently makes and that decisions on its adoption by ICT directors are made on the basis of individual operational need. It was noted that many organizations have already adopted OSS to serve their own organizational needs. In addition, the ICT Network felt that while the JIU report presented many interesting findings, it failed to satisfy its own mandate of presenting a case for the use of Open Source Software, and instead presented recommendations having little or nothing to do with open source.

Decision 3

In order to help all the constituent players to better understand the choices ahead in the area of a common or centralized payroll, the network concluded that the working group addressing ERP should undertake a business case review of common and centralized payroll.

Decision 4

The Network also agreed that economies could be furthered if likeminded agencies collaborated on developing their payroll systems, and the Network noted that collaborative arrangements were already in place: FAO and ILO with an Oracle implementation and UNICEF, IMO and WFP with SAP.

Decision 5

It was decided to keep OSS on the agenda of the ICT Network and revisit the issue of open source use in greater depth at its next meeting.