Transitioning to SAP S/4HANA is a challenging process involving multiple business processes, complex data structures, and numerous customizations. Existing SAP customers transitioning to SAP S/4HANA and new customers considering SAP S/4HANA adoption need to evaluate the business case and define a road map for this transition with minimum risk and disruption. Service providers can help enterprises see a quicker ROI through industry-specific solutions and specialized processes.
This is one of the top findings from Avasant’s SAP S/4HANA Services 2022–2023 RadarView™, a comprehensive study on SAP S/4HANA service providers. It takes a close look at the leaders, innovators, disruptors, and challengers in this market.
This report also addresses the need for organizations to accelerate their digital journeys, embrace the cloud, and identify the right SAP S/4HANA service provider. It highlights key trends in the SAP S/4HANA services market and our view on the market’s direction over the next 12 to 18 months.
Avasant evaluated 27 providers using three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of these, we recognized 23 that brought the most value to the market over the past 12 months.
The RadarView recognizes platform providers in four categories:
- Leaders: Accenture, Capgemini, Deloitte, HCLTech, IBM, Infosys, and Wipro
- Innovators: Atos, Cognizant, LTIMindtree, SAP, TCS, and Tech Mahindra
- Disruptors: Birlasoft, DXC, Fujitsu, InvenioLSI, and NTT DATA
- Challengers: Delaware, Hitachi Vantara, ITC Infotech, Kyndryl, and Zensar
The following figure from the full report illustrates these categories:
“In these times of tight budgets, few organizations can afford to spend a lot of money on an SAP S/4HANA migration,” said Naresh Lachmandas, partner and senior fellow at Avasant. “Smart service providers are finding ways to combine the client’s transformation budget with their ongoing support budget to get to S/4HANA without significant incremental costs.”
The full report provides a number of findings and recommendations, including the following:
- The demand for SAP S/4HANA services continues to grow as the 2027 deadline for legacy SAP ERP support gets closer. To cater to this demand, service providers plan to dedicate about 28% and 25% of their budget for SAP S/4HANA services to human capital and IP/asset development, respectively.
- Enterprises can streamline business processes and achieve faster time to market by leveraging platforms with preconfigured KPIs for industries, such as retail, life sciences, utilities, and the public sector, and enabling closed-loop manufacturing that connects shop floor operations with the SAP system.
- Service providers are investing in specialized process mining solutions to help enterprises understand the impact of SAP S/4HANA on individual business processes, develop a business case for transformation, and enhance the measurement of KPIs.
- Service providers are also investing in proprietary solutions to help businesses calculate their sustainability scores, improve traceability in their sourcing, and accelerate their journey toward achieving net-zero carbon emissions.
“The demand for SAP S/4HANA services increases as legacy SAP customers accelerate their transition and new organizations also consider adopting SAP S/4HANA,” said Premal Shah, lead analyst at Avasant. “Service providers strive to meet this demand by developing proprietary assets that accelerate the transformation process.”
The full report also features detailed profiles of the top 23 service providers, including their solutions, offerings, and experience in assisting enterprises in driving digital transformation with SAP S/4HANA adoption.
This Research Byte is a brief overview of the full SAP S/4HANA Services 2022 RadarView™ (click for pricing).