botched it project costs superannuation funds

http://spectator01.businessspectator.com.au/news/2013/11/26/financial-services/supers-face-it-project-blowout

http://www.afr.com/p/technology/botched_it_project_costs_superannuation_7sKqjMy4TlQ10wPCdFBSwN

The IT development cost of building a superannuation administration platform was highlighted in the AFR and Business Apectator today. The industry superfund administration firm Superpartners, is in the news for a huge IT cost blow out trying to launch a new system to replace their current administration systems. It appears the new system will be delivered 4 years late and massively over budget.

It's not a completely fair comparison, as part of the $250m Superpartners will be spending will be used for data-migration, but it does highlight how much value the HUB24 IP actually provides. It's fair to say Superpartners could have saved themselves a lot of heartache by instead partnering with a recognised super administration leader and licensing the HUB24 technology instead of 'going it alone' .

Legacy upgrades like this are becoming extremely common in the industry and are a huge and expensive issue for many super administrators. With the Platform space pretty much locked down by the banks, there are very few independent alternatives to turn to should a provider wish to avoid Superpartners fate. HUB is exceptionally well positioned to benefit from shift. I would just prefer they license the technology, not sell the business. $60m appears very cheap when you look at how much Superpartners have just spent on something that doesn't work.