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"It is crucial that the organization places itself in a position that allows it to take advantage of a changing environment," said Eric Janes, B.C. Hydro's vice-president of customer services. "We believe that SAP will provide the ideal cornerstone to meet our needs."
The German software company's system is expected to streamline the handling of customer inquiries and billing.
The new services company, announced last year, is expected to employ about 2,000 people and manage B.C. Hydro's customer services, information technology, human resources and financial and procurement services.
But the union representing workers to be transferred to the new company has asked the B.C. Utilities Commission to stop the plan, arguing the government must hold hearings first.
The Office and Professional Employees Union wants to prevent privatization of parts of the company and says the commission has a legal obligation to protect the interests of B.C. consumers.
In 2001, Nova Scotia grocer Sobeys decided to abandon a company-wide software system being developed by SAP after a five-day crash of the system, which was to track the flow of groceries throughout 1,400 stores.
Sobeys took a $49.2-million restructuring charge after two years of work on the project.
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