Why So Many Local Government ERP Projects Fail and How to Get Them Right

Industry Insight

7 minute read

14 May 2025

Despite the critical role ERP systems play in local government, the majority of implementations fail making strategic planning, vendor alignment, and expert guidance more essential than ever.

Enterprise Resource Planning (ERP) systems are the backbone of efficient city and county operations. From managing finances to HR, procurement, and budgeting, these systems provide the tools local governments need to deliver services efficiently, transparently, and in compliance with regulations. Yet, many municipalities and agencies are still operating on outdated legacy systems, systems that struggle to keep up with the evolving demands of modern governance.

As technology advances, cloud-based ERPs are becoming the norm. Their scalability, flexibility, and lower long-term costs make them increasingly attractive compared to their on-prem counterparts. For local governments, the need to modernize ERP systems may seem self-evident. Yet, despite the clear benefits, ERP implementation often goes off course.

In fact, according to Gartner, between 55% and 75% of ERP projects fail to meet their intended goals. That’s a staggering number, especially for projects that demand so much time, money, and coordination. So, what’s going wrong? Why are so many ERP initiatives derailed, and what can local governments do to improve their odds?

Let’s explore the core challenges and the steps that can lead to success.

Choices, Choices, Choices

Before diving into implementation, the most critical decision lies in selecting the right ERP vendor. This step is often underestimated, but choosing a system that truly fits your organization's needs can make or break the project.

According to the Government Finance Officers Association (GFOA) Buyer’s Guide, as of 2025, there are 31 different ERP systems on the market. And that’s just the beginning. Agencies can also choose from:

  • 13 HR/Payroll systems

  • 25 Budget and Business Intelligence platforms

  • 12 Utility Billing systems

  • 13 Procurement and Contract Management tools

  • 31 Transparency/Financial Reporting solutions

With so many options, it's tempting to choose the "latest and greatest" product and assume it will work out of the box. But this approach is risky. Even the most powerful ERP software can become a costly misstep if it’s not aligned with your organization’s workflows and functional needs. This misalignment is a common root cause of ERP project failures.

Short Staffed, High Stakes

Another major challenge? Staffing. Local government departments are often stretched thin. In a 2024 survey conducted by the National Association of State Chief Information Officers (NASCIO), 90% of CIOs reported that recruiting, retaining, and training qualified staff remains a top concern.

As city populations grow and citizen expectations increase, governments must simultaneously manage infrastructure, adopt new technologies, enhance cybersecurity, and maintain regulatory compliance. The pressure is enormous.

Now add the workload of a major ERP implementation project which, according to a Gartner survey of 279 participants, typically takes around 24 months to complete. With limited personnel and already full workloads, dedicating sufficient time and expertise to such a long-term project can be nearly impossible without additional support.

Don’t Go It Alone

Given these challenges, many local governments turn to experienced partners to guide them through the ERP journey.

At Sciens, we specialize in helping local governments make smart, informed decisions about ERP systems. Our experienced consultants work closely with agencies to develop an Request for Proposal (RFP) that encompasses their unique needs, navigate the complex vendor landscape, and select the best fit solution for long-term success.

One recent success story is our partnership with the City of Cleburne, Texas. Facing limited vendor support and the pressures of a fast-growing population, the City turned to us to help modernize its outdated legacy ERP system. We guided them through a strategic selection process that positioned them for long-term efficiency and scalability.

But it doesn’t stop at selection. Implementation is a long, intricate process and we’re with you every step of the way. Our skilled project managers and implementation consultants have led numerous municipalities through successful ERP transitions. We offer agile, responsive project management, backed by disciplined oversight of vendors to ensure that milestones are met and goals are achieved.

Recently, The City of Norman partnered with Sciens to modernize its ERP system through a multi-vendor approach spanning Finance, HR, Utility Billing, Asset Management, and Community Development. With complex integration needs and a focus on data accuracy, the City relied on Sciens for strategic guidance, deployment planning, data conversion, and system interfacing. Our approach streamlined operations and enabled a smooth transition to a modern, best-of-breed ERP environment.

From initial planning and vendor evaluation to system configuration and go-live, we proactively manage challenges and optimize outcomes. We don’t just advise on selection and implementation, we empower governments to use ERP systems effectively for years to come.

Want to learn more?

Contact us to learn how our expertise can support and guide your organization through a successful ERP journey.

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