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SAP Ecosystem Helps U.S. Firms Catch Up on Sustainability

U.S. enterprises are solving a sustainability skills shortage by tapping into service providers’ expertise, ISG Provider Lens report says

U.S. enterprises that want to improve their sustainability are turning to SAP ecosystem partners for enterprise resource planning (ERP) solutions to reach their goals, according to a new research report published by Information Services Group (ISG)  a leading global technology research and advisory firm.

The 2022 ISG Provider Lens SAP Ecosystem report for the U.S. finds companies face growing pressure on sustainability but find it hard to hire enough experts to meet those expectations. They look to service providers for the expertise they need, especially in high-demand segments such as SAP solutions for sustainability.

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“Sustainability has become a major focus for both providers and enterprises in the SAP ecosystem,” said Bill Huber, ISG partner, Digital Platforms and Solutions. “It is a key requirement for enterprise operations and service provider offerings.”

One reason for the shortage of sustainability talent is that the U.S. is still catching up to Europe, where the trend toward decarbonization emerged earlier, ISG says. European experience and case studies should help global SAP service providers assist U.S. firms.

The next big innovation driving the market for SAP’s ERP offerings will be the expansion of IoT to capture and analyze data for insights relevant to environmental, social and governance (ESG) objectives, the report says. SAP ecosystem partners are collaborating more with SAP to create sustainability solutions such as carbon footprint analysis, supply-chain track-and-trace capabilities and route optimization.

Many U.S. enterprises are aggressively pursuing digital transformation and increasing their use of SAP applications in the process, primarily in the cloud, the report says. ISG research shows adoption of SAP S/4HANA, the company’s next-generation ERP platform, is up from last year among both large and midsize companies.

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“Service providers are helping to make S/4HANA implementations possible,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They are especially focused on delivering bundled software and services to smaller companies through the RISE With SAP program.”

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The report also explores a wide range of other SAP services and solutions available in the U.S., including managed application services and SAP Business Technology Platform solutions.

The 2022 ISG Provider Lens SAP Ecosystem report for the U.S. evaluates the capabilities of 40 providers across five quadrants: SAP S/4HANA System Transformation — Large Accounts, SAP S/4HANA System Transformation — Midmarket, Managed Application Services for SAP ERP, Managed Platform and Cloud Services for SAP, and SAP Business Technology Platform.

The report names Infosys and Wipro as Leaders in all five quadrants. It names Accenture, Capgemini, HCL and TCS as Leaders in four quadrants each and Cognizant and IBM as Leaders in three quadrants each. Tech Mahindra is named as a Leader in two quadrants, and Atos, Birlasoft, Deloitte, DXC Technology, Hexaware, Kyndryl, Mindtree and NTT DATA are named as Leaders in one quadrant each.

In addition, Atos and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants each. Hexaware, LTI, Navisite and UST are named as Rising Stars in one quadrant each.

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