Service providers are adding resources, enhancing tools to help power the transformation, ISG Provider Lens report says
Enterprise demand for SAP transformation services in the Nordics has grown exponentially over the past 12 months, as companies seek industry-specific solutions and accelerate their cloud transformations, according to a new research report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“They are looking for support from providers throughout the entire transformation process – from assessment to implementation and beyond.”
The 2023 ISG Provider Lens™ SAP Ecosystem report for the Nordics finds the planned phase-out of support for SAP’s ERP Central Component (ECC) in 2027 has led to increased adoption of SAP S/4HANA. In the Nordic region, RISE with SAP, a unified ERP-as-a-service offering, has played a major role in enterprises embracing SAP in the cloud.
“There is a rising call in the Nordics for increased SAP cloud services,” said Anthony Drake, ISG director, North Europe. “Providers have responded by extending their partnerships both with SAP and with hyperscalers.”
Expansion of the SAP market has led to a growing focus on certification and training, which remains a top priority among service providers, the ISG report says. Over the past few years, there has been a significant increase in certified professionals for SAP cloud solutions on the provider side, both globally and locally.
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Providers have also increased their focus on developing industry-specific roadmaps to help enterprises overcome challenges specific to their industries, the ISG report says. For example, accounting and consulting firms have been using their expertise to expand their footprints in the Nordic region by supporting central finance transformations on SAP S/4HANA. Some of these same firms have built up their employee base in the region, ISG says.
There has been a corresponding increase in local resources in the Nordic region that are familiar with regional nuances and the challenges of regional clients across industries. According to the ISG report, the preference among Nordic enterprises for a local presence has prompted service providers to establish regional delivery centers and increase the number of dedicated and trained full-time employees in the Nordics.
“Enterprises are seeking SAP service providers that will remain with them over the long haul,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They are looking for support from providers throughout the entire transformation process – from assessment to implementation and beyond.”
The report also examines how providers have stepped up efforts to incorporate automation and AI in the tools and accelerators they use for SAP transformations and managed services.
The 2023 ISG Provider Lens™ SAP Ecosystem report for the Nordics evaluates the capabilities of 29 providers across three quadrants: SAP S/4HANA System Transformation, Managed Application Services for SAP ERP and Managed Platform and Cloud Services for SAP ERP.
The report names Accenture, Capgemini, Eviden (Atos), HCLTech, TCS and Tietoevry as Leaders in three quadrants each, while Cognizant and IBM are named as Leaders in two quadrants each. Infosys, Kyndryl, Tech Mahindra, T-Systems and Wipro are named as Leaders in one quadrant each.
In addition, LTIMindtree is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. PwC is named as a Rising Star in one quadrant.
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