Failed IT Project Costs Dutch Bailiff Company 13 Million Euros

A completely failed automation project has cost GGN, one of the largest debt collection and bailiff companies in the Netherlands, over 13 million euros. The IT disaster was one of the reasons the entire board was forced out, according to an investigation by RTL Z.

GGN operates five offices with around 350 employees. Last year it posted a profit of 3 million euros on revenue of over 38 million euros. The company began an ambitious automation project called Nexus in late 2017, budgeted at 7.4 million euros and initially scheduled for completion in 2019. Due to delays, it didn't start until 2020. Two years later, further delays and significant cost overruns emerged.

In 2023, an evaluation found that Nexus no longer met GGN's requirements or aligned with the organization's changing direction. Completing the project to meet expectations would have cost an additional 10 to 16 million euros. The supervisory board pulled the plug in fall 2023, by which time nearly 12 million euros had already been invested.

The multimillion-euro IT failure led to the entire board being removed a few months later. In a letter about the suspension of one director, supervisory board chair Mariëtte Doornekamp called the project "a total failure that has cost GGN over 13 million euros without any noticeable result." By the end of 2024, the entire supervisory board also resigned. A GGN marketing director said all project costs were transparently recorded in annual reports but acknowledged it was "a waste of investment."