Scaling Operational Intelligence and Automation with Gen AI-Infused SAP S/4HANA Transformation

December, 2025

Enterprises are accelerating their SAP S/4HANA transformations to modernize the digital core, enhance operational resilience, and scale Gen AI across end-to-end business processes. Momentum is shifting from strategy design to execution, driven by the urgency to address legacy complexity, strengthen data foundations, and embed automation and decision intelligence where it directly enhances business performance. Sustainability and regulatory alignment are becoming integral priorities, with organizations leveraging S/4HANA to operationalize carbon tracking, ethical sourcing, and audit-ready ESG reporting. To deliver outcomes at scale, service providers play a critical role, bringing guided transformation frameworks, industry-specific assets, automation toolkits, and delivery governance to reduce risk and accelerate value realization.

Both demand-side and supply-side trends are covered in our SAP S/4HANA Services 2025–2026 Market Insights™ and SAP S/4HANA Services 2025–2026 RadarView™, respectively. These reports present a comprehensive study of SAP S/4HANA service providers and closely examine market leaders, innovators, disruptors, and challengers. They also provide a view into key market trends and developments impacting the SAP S/4HANA services space.

Avasant evaluated 35 providers using three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of these, we recognized 26 providers who brought the most value to the market over the past 12 months.

The RadarView recognizes platform providers in four categories:

    • Leaders: Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, TCS, and Wipro
    • Innovators: DXC Technology, IBM, LTIMindtree, SAP Services, and Tech Mahindra
    • Disruptors: Atos, Birlasoft, Genpact, KaarTech, NTT DATA, and PwC
    • Challengers: Coforge, Delaware, EY, ITC Infotech, KPMG, UST, and YASH Technologies

The following figure from the full report illustrates these categories:

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“Complex legacy environments continue to challenge the pace of modernization,” said Ruth Steinberg, partner at Avasant. “Providers with proven migration methods and deep process knowledge help reduce ambiguity, enabling enterprises to move forward with greater confidence and predictability.”

The findings in the reports include the following:

    • SAP S/4HANA adoption is accelerating, with 43% of enterprises now in active migration or live status compared with 34% last year, signalling a strong shift from planning to execution ahead of the 2027 deadline for SAP ECC support.
    • Gen AI is scaling from pilots into production, driving measurable impact across procure-to-pay, plan-to-produce, hire-to-retire, and record-to-report cycles through intelligent automation, predictive insights, and enhanced decision support embedded directly into operational workflows.
    • Manufacturing, retail, and CPG continue to lead S/4HANA investment, contributing 42% of services revenue as product traceability, resilient supply chains, and digitized plant and warehouse operations drive the need for modernization across these sectors.
    • Agentic AI is improving productivity and reliability across the SAP services life cycle, delivering 24%–43% efficiency gains across advisory, prototyping, development, testing, user enablement, and post-go-live optimization by reducing manual effort and minimizing deployment risk.

“Adopting a clean core is becoming a strategic requirement, not an architectural preference,” said Premal Shah, principal analyst at Avasant. “When enterprises standardize the digital foundation and minimize custom code, they unlock faster innovation cycles, lower upgrade risk, and scalable Gen AI adoption.”

The SAP S/4HANA Services 2025–2026 RadarView™ also features profiles of the 26 service providers, including their solutions, offerings, and experience in assisting enterprises with SAP S/4HANA adoption.


This Research Byte is a brief overview of Avasant’s SAP S/4HANA Services 2025–2026 Market Insights™ and SAP S/4HANA Services 2025–2026 RadarView™. (click for pricing)