Companies are restarting cloud and S/4HANA migrations to enable business expansion and meet sustainability goals, ISG Provider Lens report says
Enterprises in the Nordics are resuming SAP S/4HANA transformations they put on hold during the COVID-19 pandemic, according to a new research report published.a leading global technology research and advisory firm.
The 2022 ISG Provider Lens SAP Ecosystem report for the Nordics finds many Nordic enterprises started moving SAP applications into the cloud during the pandemic so they could reach their customers online. As the pandemic recedes, they are expanding their S/4HANA implementations to bounce back to pre-pandemic levels of business. This trend is expected to continue.
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“More Nordic companies are now adopting SAP services to become more agile in enterprise planning and financial operations. These companies are funding such products by cost-effectively outsourcing the management of SAP applications and platforms,” said Yadu Singh, EMEA lead, Digital Platforms and Solutions, for ISG. “With service providers’ help, they are more able to focus on business expansion.”
Companies involved in retail, manufacturing, supply chains and niche industries such as forestry lead in the growing adoption of S/4HANA, the report says. Along with overall growth in outsourcing and cloud migration in the region, the impending end of support for SAP’s on-premises ERP applications is leading enterprises to move to S/4HANA.
Service providers in the Nordics introduced new tools and accelerators during the pandemic to help clients become more efficient, reduce costs and launch new products and services more quickly, ISG says.
“Providers are using AI and automation to make their tools more useful to clients,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Many also offer cloud management platforms.”
The focus on meeting environmental, social and governance (ESG) goals in the Nordics, a leading region for this trend, is another factor driving S/4HANA transformations, ISG says. Enterprises are adopting S/4HANA solutions to enhance their ability to measure, assess and reduce carbon emissions throughout their infrastructure and operations.
As they move to the cloud and implement S/4HANA, many organizations are also working on integrating their SAP and non-SAP applications through SAP Business Technology Platform (BTP), the report says. This integration is helping them take advantage of enterprise data to plan and execute business expansions.
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The report also explores other SAP ecosystem trends in the Nordics, including the continuing preference for local service providers, a skills shortage that providers are working to overcome, and the impact of the RISE with SAP program.
The 2022 ISG Provider Lens™ SAP Ecosystem report for the Nordics evaluates the capabilities of 30 providers across four quadrants: SAP S/4HANA System Transformation, Managed Application Services for SAP ERP, Managed Platform and Cloud Services for SAP, and SAP Business Technology Platform.
The report names Accenture, Capgemini, HCL, TCS and Tietoevry as Leaders in all four quadrants. It names Atos, IBM and Infosys as Leaders in three quadrants each. Cognizant and Tech Mahindra are named as Leaders in two quadrants and NTT DATA and Wipro are named as Leaders in one quadrant each.
In addition, Cognizant, Infosys, Tech Mahindra and Wipro are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
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