This report identifies key demand-side trends in the SAP SuccessFactors services space, helping enterprises define their strategy for SAP SuccessFactors adoption. It also provides an overview of enterprise challenges in this space based on Avasant’s assessment.
Why read this Market Insights?
Organizations are increasingly integrating SAP SuccessFactors with ERP systems to scale HR operations and unify data across business units. Simultaneously, early adoption of SAP Joule AI features is enabling automation in recruitment, self-service, and performance management, with 60%–70% of clients piloting such use cases. Service providers are further embedding generative AI across the human capital management (HCM) life cycle, offering tools for onboarding, workforce planning, payroll optimization, and learning personalization. Sector-specific SAP SuccessFactors extensions are also being deployed to address unique industry needs such as union management, staffing fluctuations, and compliance in manufacturing, retail, and healthcare.
The SAP SuccessFactors Services 2025 Market Insights™ aids enterprises in identifying important market trends and challenges for any SAP SuccessFactors migration journey that they take part in.
Methodology
The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.
Table of contents
About the report (Page 3)
Executive summary (Pages 4–7)
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- Defining SAP SuccessFactors services
- Key enterprise SAP SuccessFactors services trends shaping the market
- Avasant recognizes 19 top-tier providers supporting the enterprise adoption of SAP SuccessFactors
Demand-side trends (Pages 8–13)
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- As organization size grows, the need to scale HR operations across geographies and business units pushes enterprises toward integrated HR and ERP platforms.
- Enterprises adopting SAP SuccessFactors are accelerating HR transformation through early adoption of SAP Joule AI features.
- Enterprises leverage AI-driven solutions offered by SAP SuccessFactors service providers across the HCM life cycle.
- Retail and CPG, manufacturing, and utilities and resources contribute to half of the total market demand for SAP SuccessFactors services.
- The top sectors enhance HR transformation by deploying SAP SuccessFactors extensions to support industry-specific use cases.
Key contacts (Page 14)
Read the Research Byte based on this report. Please refer to Avasant’s SAP SuccessFactors Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.