Leading service providers are investing in automated management platforms to help streamline the migration process, ISG Provider Lens report says
The RISE with SAP program has proven especially successful for new clients and midmarket enterprises in Brazil that are committed to a clean-core adoption of SAP S/4HANA, according to a new research report published today by Information Services Group, a leading global technology research and advisory firm.
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“When considering an AMS provider, enterprises should carefully assess its automation and service catalogs.”
The 2023 ISG Provider Lens SAP Ecosystem report for Brazil finds that for midmarket clients running the SAP ERP Central Component (ECC) solution, RISE with SAP, a unified ERP-as-a-service solution, offers significant cost reductions. Meanwhile, large enterprise clients with an SAP ECC or SAP S/4HANA perpetual license are finding it difficult to settle on the best project approach to accommodate their business needs and still meet RISE with SAP’s terms.
“Many of Brazil’s larger firms are taking a wait-and-see approach before adopting S/4HANA,” said Bill Huber, partner, digital platforms and solutions, for ISG. “They are buying themselves some more time in order to assess all the licensing implications.”
When it was launched in 2021, the RISE with SAP program initially had a chilling effect on providers of SAP infrastructure services, the ISG report says. Many providers mistakenly assumed that enterprises would embrace the program and would willingly transfer the responsibility of managing their infrastructures to SAP. Those providers either put their investments on hold or planned to divest entirely from providing SAP infrastructure services, ISG says.
That turned out to be a miscalculation. According to the ISG report, enterprises in Brazil have pushed back against some of SAP’s terms and have been reluctant to depend exclusively on SAP to support their core platform. Although SAP has since improved its SLAs for the RISE with SAP program, its resolution time and service availability still fall below the level of cloud-certified managed service providers, ISG finds.
When it comes to choosing managed services, there are two basic types of enterprises in Brazil, the ISG report says. There are those that are primarily concerned with keeping costs down and those that recognize the value of the tools that improve processes and service quality and are willing to pay more for them. Managed service providers in Brazil are responding accordingly. While some are still focusing on low-cost offerings, others are developing automated management platforms that use AI to accelerate and improve support, ISG says.
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“The application services market has grown very competitive in Brazil,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “When considering an AMS provider, enterprises should carefully assess its automation and service catalogs.”
The report also examines how SAP’s cloud-based Business Technology Platform (BTP) can offer clients more options on integration with cloud-native applications.
The 2023 ISG Provider Lens™ SAP Ecosystem report for Brazil evaluates the capabilities of 44 providers across four quadrants: SAP S/4HANA System Transformation – Large Accounts, SAP S/4HANA System Transformation – Mid Market, Managed Application Services for SAP ERP and Managed Platform and Cloud Services for SAP ERP.
The report names Accenture, Atos, Capgemini, NTT DATA, Softtek, T-Systems and Wipro as Leaders in three quadrants each, while Infosys and Tech Mahindra are named as Leaders in two quadrants each. BCI Consulting, Essence, IBM, Kyndryl, Megawork, MIGNOW, Numen, Stefanini and TIVIT are named as Leaders in one quadrant each.
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