Investissement Québec (IQ), while offering technology transformation support to companies, has experienced the experience combining cost overruns and delays to achieve its own goals The newspaper.
“It’s like the poorly trained shoemaker. Companies were told to go digital to be more efficient, but IQ also had to do it themselves,” said a source familiar with the situation, who spoke on condition of anonymity to avoid any possibility of retaliation.
“IQ’s networks were really in a state of advanced disuse. There were even operational risks because the servers were really too old. It was therefore necessary to take very concrete measures,” our source said.
Three years and $20 million
In early 2019, the governing body’s board of directors gave the green light to a $20 million “roadmap” to modernize the organization’s information technology (IT). The extensive project, which was to extend over three years, included four main projects: the implementation of the software package Workday, the customer relationship management system Salesforce, a new security framework and a transformation of data warehousing (EODE project).
“Nothing was skimped on and everything mattered,” our source summed up.
IQ declined to say how much it has spent on its technology roadmap so far. However, the Journal identified more than $29 million worth of contracts awarded related to this project since 2019. This does not include the hiring Crown Corporation had to make to strengthen its internal teams.
According to our information, only one of the four projects went from $4 million to at least $7 million in costs.
It’s also impossible to know when IQ thinks it’s done the job. Vice President of Business Technologies, Martin Caron, declined our interview request. Internally, some argue it will take at least five years, until the end of 2023.
Not realistic
“These overruns are largely explained by a lack of qualified internal manpower, the inability of project managers to assess the activities to be carried out and the managers’ inability to accept the realistic deadlines proposed,” said another knowledgeable source.
Not to mention the impact of the pandemic, the nasty surprises it uncovered, and the severe labor shortages in the IT industry.
“Of course, three years was quite ambitious,” said Sylvain Goyette, a professor at UQAM and a specialist in IT management.
“Changing all the systems at once is like taking your car and rebuilding it almost piece by piece,” he said.
With kind approval
Sylvain Goyette, Professor at UQAM
The expert wonders why IQ decided to carry out four important projects at the same time. “Often we have an emergency and think that by making a big jump we’ll save time and energy, but that’s rarely the case,” he said.
Mr. Goyette specifically wonders about the advisability of modifying the data storage mode while IQ was changing its software. “It’s not usually a good strategy,” he said.
“It is evident that Investissement Québec’s transformation in 2020, which saw the organization double its size and add important components to its service offering, had an impact on technology priorities,” said a laconic spokeswoman for the institution, Isabelle Fontaine .
Massive departures and tensions among executives
As many as six of Investissement Québec’s eight executives in IT departed while the state-owned company engaged in a painful technology catch-up.
The six departures followed each other over a period of about a year, from spring 2021 to spring 2022, Le Journal noted.
The wave began with the firing of vice president of business technologies, Tania Tanic, who left the company in May 2021 with a $134,000 severance package after staying in the position for less than three years.
Photo from LinkedIn
Tania Tanic, Former Vice President, Business Technologies, Investissement Québec
“There was a relationship issue” between Ms Tanic and her boss, senior vice president of finance, risk management and business technology Christian Settano, said a source who asked not to be identified.
Photo from LinkedIn
Christian Settano, Senior Vice President, Finance, Risk Management and Business Technologies, Investissement Québec
Martin Caron, who succeeded Ms Tanic in August 2021, made several changes as a result.
“Works that have been done [dans le cadre de la modernisation des systèmes informatiques] had to be restarted when fully valid,” our source said.
With kind approval
Martin Caron, Vice President of Business Technologies, Investissement Québec
Additionally, in 2021 and 2022, IQ hired five professionals as managers to work with Mr. Caron in the city of Quebec.
So many changes in how a service is managed have inevitably impacted the delivery of transformational projects.
“The more turnover there is, the more the group risks becoming a little dysfunctional,” points out Sylvain Goyette, professor at UQAM and specialist in IT management.
A contract with the former VP’s company
The Journal also noted that in March 2022, IQ awarded a major contract to Kyndryl Canada, the company Tania Tanic has worked for since September 2021.
The nearly $1.1 million contract was for the “acquisition and installation of network switches.”
For this contract, “all applicable rules were observed,” assured a spokeswoman for IQ, Isabelle Fontaine, without giving any further details.
Main IT contracts awarded by IQ since 2019
- $7.4 million in one day’s work
- $5.7M Groupe Azur (Salesforce)
- $4.8 million Adnia Consulting (EODE)
- $2.6 million ESI Technologies (security)
- $1.5M KPMG (Working Day)
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