SAP SuccessFactors Services 2025 Market Insights™

July, 2025

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)

    • 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)

    • 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.

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DISCLAIMER:

Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.

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