Integrating Generative AI with SAP SuccessFactors to Elevate Employee Experience

April, 2024

Banking upon Gen AI’s content summarization and contextual response generation capabilities, organizations are keen on integrating Gen AI solutions with SAP SuccessFactors to drive efficient HR processes and elevate employee experience. These solutions help tailor employee communications, resolve HR and employee benefits-related queries, and automate key recruitment activities. Moreover, service providers are expediting implementation and enabling precise project scheduling through preconfigured solutions that offer standardized HR and payroll processes, industry-specific configurations, and structured data migration from legacy HR systems.

Both demand-side and supply-side trends are covered in our SAP SuccessFactors Services 2024 Market Insights™  and SAP SuccessFactors Services 2024 RadarView™ , respectively. These reports present a comprehensive study of SAP SuccessFactors service providers and closely examine market leaders, innovators, disruptors, and challengers.

We evaluated 32 service providers across three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of the 32 providers, we recognized 23 that brought the most value to the market over the past 12 months.

The report recognizes service providers in four categories:

    • Leaders: Accenture, Capgemini, Deloitte, IBM, Infosys, and Wipro
    • Innovators: Birlasoft, Cognizant, HCLTech, LTIMindtree, SAP, and TCS
    • Disruptors: Effective People, HR Path, NTT DATA, PwC, Tech Mahindra, and Veritas Prime
    • Challengers: AspireHR, DXC Technology, EPI-USE, Eviden, and The Silicon Partners

Figure 1 below from the full report illustrates these categories:

Moneyshot 5 1030x687 - Integrating Generative AI with SAP SuccessFactors to Elevate Employee Experience

“Transitioning to SAP SuccessFactors enables centralized and data-driven HR operations for enterprises,” said Frank Scavo, senior partner at Avasant. “Service providers’ investments in integrating generative AI solutions in key areas, such as personalized communication and hiring automation, further enhance value for HR teams.”

The reports provide several findings, including the following:

    • Utilities and resources, manufacturing, and retail and CPG industries collectively account for 59% of the demand for SAP SuccessFactors services. Industry-specific use cases such as expatriate management in utilities, store workforce planning in retail, and shift scheduling in manufacturing contribute to the demand for SAP SuccessFactors.
    • Customers integrate specialized partner solutions to solve use cases, including Gen AI-led assistance for recruiters, time and attendance management compliant with labor regulations, post-payroll compliance management, and employee sentiment analysis.
    • SAP SuccessFactors service providers plan to allocate about 60% of their investments over the next 12 months to asset building and talent development.
    • The fixed price-based pricing model drives about 58% of the engagements as service providers leverage solutions with preconfigured HR processes to reduce variances in standard implementations.

“SAP SuccessFactors clients look for quick implementation and accurate project planning to mitigate risks and optimize costs,” said Gaurav Dewan, research director with Avasant. “Service providers address this demand through solutions with standardized HR and payroll processes and prebuilt industry-specific configurations.”

The SAP SuccessFactors Services 2024 RadarView™  also features detailed profiles of the top 23 service providers, along with their solutions, offerings, and experience in assisting enterprises in their SAP SuccessFactors adoption journeys.

This Research Byte is a brief overview of the SAP SuccessFactors Services 2024 Market Insights™  and SAP SuccessFactors Services 2024 RadarView™ . (click for pricing).