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ISG to Publish Report on Providers of SAP Transformation

Upcoming ISG Provider Lens report will evaluate service providers that can help enterprises move to S/4HANA and can offer SAP-related managed services

Information Services Group, a leading global technology research and advisory firm, has launched a research study examining how enterprises are working with service providers to move their SAP environments to S/4HANA.

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“SAP S/4HANA transformation projects require detailed planning and extensive business participation”

The study results will be published in a comprehensive ISG Provider Lens™ report, called SAP Ecosystem, scheduled to be released in May 2023. The report will cover companies offering a range of services related to transitioning SAP workloads and maintaining them on the S/4HANA software suite. The study also evaluates providers of managed application services and managed platform and cloud services for SAP ERP.

Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

The study notes that thousands of SAP environments are awaiting transition to S/4HANA as SAP moves to end support for some of its older ERP software at the end of 2027. The study focuses on helping enterprises determine the right partners to help them complete a brownfield S/4HANA transition.

“SAP S/4HANA transformation projects require detailed planning and extensive business participation,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Clients need to find the right partner that delivers high business value with low costs.”

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ISG has distributed surveys to more than 105 providers. Working in collaboration with ISG’s global advisors, the research team will produce four quadrants representing the typical SAP transformation services enterprises are buying, based on ISG’s experience working with its clients. The four quadrants are:

  • SAP S/4HANA System Transformation – Large Accounts, assessing consulting and system integration service providers that are developing, deploying and testing enterprise applications using SAP S/4HANA. This quadrant covers large enterprises, which need providers that have the ability to manage the complexity related to large SAP transformation projects. Providers must be able to operate multiple SAP instances and comply with strict client requirements.
  • SAP S/4HANA System Transformation – Midmarket, covering providers offering similar SAP transformation services to mid-sized enterprises. Providers should be able to deploy SAP solutions using multiple methodologies, including packaged solutions aimed at small and mid-sized businesses. They should use industry-specific templates to reduce the transformation cycle.
  • Managed Application Services for SAP ERP, assessing providers’ ability to offer managed services, including enhancements, maintenance and support functions. Providers should be able to monitor applications, offer remote support and centrally manage applications for S/4HANA and legacy SAP business suites.
  • Managed Platform and Cloud Services for SAP, evaluating providers that manage hybrid cloud environments, offer security access services, monitor infrastructure, ensure system availability and offer disaster recovery, and data backup and restoration. Providers should be capable of resolving and eliminating clients’ initial technical barriers and resistance to moving enterprise resource planning to the cloud.

Geographically focused reports from the study will cover the global SAP market and examine products and services available in the U.S., the U.K., Germany, Brazil and the Nordics. ISG analysts Akhila Harinarayan, Pedro L. Bicudo Maschio, Peter Höroldt, Tarun Vaid, Maharshi Pandya, Vartika Rai, Gabriel Sobanski, Anusha R and Kiran B will serve as authors of the report.

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