Digital transformation continues to advance at an unprecedented pace, with enterprises across the Nordics, the United Kingdom, and Germany gravitating towards SAP S/4HANA. This shift has resulted in an increased demand for competent SAP providers, a trend examined in the insightful 2023 ISG Provider Lens SAP Ecosystem reports.
The Nordics have seen a growing interest in SAP cloud services, particularly those that provide industry-specific solutions. In response to this demand, providers are intensifying their collaborations with both SAP and hyperscalers. Meanwhile, the impending discontinuation of support for SAP’s ERP Central Component (ECC) scheduled for 2027 has accelerated the transition to SAP S/4HANA. The RISE with SAP program, a comprehensive ERP-as-a-service offering, is facilitating this cloud transformation for enterprises.
Given this surge in demand, SAP providers are prioritizing training initiatives. By focusing on building certified teams, providers are strengthening their expertise in SAP cloud solutions. Another area of concentration for providers is the development of industry-specific solutions. Drawing on their domain knowledge, providers are aiding enterprises in addressing industry-specific challenges and crafting tailored roadmaps to navigate potential obstacles in each enterprise’s transformation journey.
ISG Provider Lens Research Partner and Global Leader Jan Erik Aase explained:
“Enterprises are seeking SAP service providers that will remain with them over the long haul. They are looking for support from providers throughout the entire transformation process – from assessment to implementation and beyond.”
Sustained support from SAP providers is seen as a crucial aspect of a successful transformation process. Enterprises are seeking SAP service providers that will stay with them over the long term, offering comprehensive assistance from initial assessment through to implementation and beyond.
SAP Providers Facilitate a Surge in Adoption in the UK and Germany
In the United Kingdom, the use of SAP ERP is on the rise, resulting in an increased demand for managed application services. This shift is driven by the impending discontinuation of SAP ECC 6.0 support and the appeal of the RISE with SAP program. The latter, renowned for enhancing operational speed and efficiency, has sparked a wave of large SAP S/4HANA transformation projects across the United Kingdom.
To meet this demand, providers are widening their offerings and crafting comprehensive solutions to facilitate end-to-end SAP S/4HANA transformations. To stand out in the crowded market, providers are leveraging proprietary tools, accelerators, and unique solutions.
“UK service providers are keenly aware of changes in the SAP market. In response, they’ve stepped up to act as full-fledged business partners for their clients,” ISG EMEA Lead of Digital Platforms and Solutions Yadu Singh said.
Germany, too, is becoming a hub for significant SAP projects. Encouraged by the planned discontinuation of support for SAP’s ECC and Business Suite by 2027, service providers foresee a promising future. To manage the growing demand, they are looking to bolster their portfolios by developing industry-specific capabilities and focusing on unique selling points and added value propositions to attract customers. Strategies like templates, automation, and partnerships have surfaced as competitive advantages, enhancing service quality, improving result predictability, and reducing timelines for individual tasks and transformation programs.
According to Dr. Matthias Paletta, who serves as the head of technology modernization for ISG in Germany, service providers are making active preparations for the impending transition to S/4HANA. He made the observation that a good number of companies are reacting by broadening the scope of their collaborations with SAP as well as with hyperscalers.
In closing, the future looks bright for SAP providers in the Nordics, the United Kingdom, and Germany. As SAP continues to spearhead digital transformation, providers are expected to play a vital role as enablers, promoting a mutually beneficial relationship that fosters enterprise growth, efficiency, and innovation. Their crucial part in aiding businesses navigate the complexities of digital transformation is undeniable and is expected to grow even more significantly in the years ahead.
