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Enterprises in Brazil Embrace Automation in Transition to SAP S/4HANA

ISG Provider Lens report finds Brazilian companies looking for service providers to help convert legacy custom code to SAP’s new ERP system

Enterprises in Brazil are adopting SAP’s S/4HANA intelligent ERP system and moving SAP workloads to the cloud using automation tools to do the heavy lifting, according to a new report published by Information Services Group, a leading global technology research and advisory firm.

The 2020 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Report for Brazil finds SAP service providers offering fine-tuned tools to help enterprises there convert data from legacy ERP systems to S/4HANA. Code inspection tools accelerate the conversion and replacement of customized code.

Most large enterprises in Brazil are taking a brownfield approach and using automation tools to convert legacy customized code and ERP systems to S/4HANA, the report says. In some cases, they decouple the legacy customizations from the ERP core while deploying artificial intelligence-powered automation and DevOps capabilities.

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Enterprises using a service provider to transform their ERP to S/4HANA should evaluate the conversion tools and accelerators offered, said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Some providers have developed industry-specific configuration templates and conversion tools that improve their ability to complete the project,” he added. “The ability to decouple custom code and convert it to independent apps is highly recommended.”

In the Brazil midmarket, automated tools and frameworks are enabling fast transformation projects, the report adds. Service providers in the country have developed the expertise to deliver S/4HANA at competitive prices, helping midmarket clients migrate from other platforms to SAP.

The COVID-19 pandemic has not stopped transformation projects that were already started, the report adds. In many cases, employees at service providers have been able to continue working from home. Available tools can remotely enable data migration and automated testing, while remote users can test the solution over the cloud.

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The report also finds automation being heavily used in the managed application services market for SAP. While automation has not replaced human coding, it is being used for repetitive tasks, including incident classification, documentation, incident analytics, alerts and incident prediction.

By automating support tasks, service providers can focus on code quality and on enhancing applications, the report adds.

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In the managed platform services space, service providers are focused on moving SAP S/4HANA to the cloud, the report says. Some pure applications service providers have resisted a cloud push from SAP and cloud providers, however, because they don’t see a clear benefit to them, considering the cost to certify their staffs for cloud-related services.

The report notes that SAP’s cloud revenue in the overall Americas region is making up for a decline in software licensing revenue due to the COVID-19 pandemic.

The 2020 ISG Provider Lens™ SAP HANA and Leonardo Ecosystem Partners Report for Brazil evaluates the capabilities of 29 providers across five quadrants: SAP S/4 HANA System Transformation – Large Accounts, SAP S/4 HANA System Transformation – Midmarket, Managed Application Services for SAP ERP, Managed Platform Services for SAP HANA, and SAP Cloud Platform and SAP Leonardo Services.

The report names IBM as a leader in four quadrants and Accenture, Atos, DXC Technology and Tech Mahindra as leaders in three. Cast group, essence IT, FH Consultoria (NTT DATA), Infosys, T-Systems and Wipro are named as leaders in two quadrants, and Megawork, Seidor, SPRO and TIVIT are named as leaders in one.

BCI Consulting, essence IT, FH Consultoria, Megawork, Infosys and Wipro were recognized as Rising Stars in one quadrant each.

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