Source : Information Services Group, Inc.

U.S. Enterprises Look to SAP’s S/4HANA to Transform Business Processes

ISG Provider Lens™ report finds U.S. companies looking to service providers to manage complex SAP installations and move workloads to the cloud

STAMFORD, Conn., July 29, 2020 (GLOBE NEWSWIRE) -- U.S. enterprises are using S/4HANA, SAP’s intelligent ERP system with integrated artificial intelligence, to transform their business processes, with many using SAP service providers to manage these installations, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Report for the U.S. finds many enterprises here interested in a two-tier adoption model for S/4HANA, with many opting for on-premises installations with heavy customizations for their main offices and the cloud version for their satellite or regional offices. The cloud version of the ERP package allows for less customization, but also for automatic upgrades and faster implementation.

S/4HANA focuses on alleviating business process problems by applying analytics to speed up delivery of insights. Many service providers, meanwhile, are focusing on lowering costs and speeding up delivery by using artificial intelligence, machine learning and robotic process automation to streamline incident management and speed up configuration, the report says.

In addition, SAP-certified professionals working at service providers are managing complex SAP installations for customers, the report adds. “Certified professionals can serve as one of the differentiators for service providers looking to showcase their SAP expertise,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Top providers are investing in reskilling employees and are growing the number of their SAP-certified professionals.”

The COVID-19 pandemic, however, is causing some enterprises to postpone new large-scale S/4HANA implementations and transformations, the report says. A few companies have completely halted their S/4HANA deals or decisions, but many others are asking services providers to “keep the lights on” and continue with basic SAP management support. Service providers are continuing to serve SAP customers with employees who work from home.

In response to COVID-19, enterprises may move their SAP workloads to the cloud to cut costs, the report adds. As the pandemic continues, enterprises may migrate S/4HANA to the cloud, and providers may offer preconfigured templates to help with that process, the report predicts.

The report finds growing demand from U.S. enterprises to integrate agile and DevOps processes into SAP services. Service providers are leveraging their proprietary tools and accelerators to deliver S/4HANA services, and they are integrating agile and DevOps methodologies with their frameworks to increase efficiency and reduce delivery times.

The report also finds that service providers are using a host of tools, proprietary frameworks, methodologies and templates for assessments code reconciliation, data management, testing and other components of S/4HANA conversions and transformations.

Many service providers also are increasing their focus on creating ready-to-run templates, industry-specific solutions and preconfigured offerings for S/4HANA, SAP Cloud Platform and Leonardo. Enterprises are embracing these solutions, seeing them as enabling faster time to market and helping them become intelligent organizations.

The 2020 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Report for the U.S. evaluates the capabilities of 33 providers across five quadrants: SAP S/4 HANA System Transformation – Large Accounts, SAP S/4 HANA System Transformation – Midmarket, Managed Application Services for SAP ERP, Managed Platform Services for SAP HANA, and SAP Cloud Platform and SAP Leonardo Services.

The report names Accenture, IBM, TCS and Wipro as leaders in four quadrants and Capgemini, HCL and Infosys as leaders in three. NTT DATA and Tech Mahindra are named leaders in two quadrants, and Birlasoft, Cognizant, Deloitte, DXC Technology, Hexaware and Mindtree are named leaders in one.

Customized versions of the report are available from Hexaware, Mindtree, Mindset, Suneratech and Wipro.

The 2020 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe and Latin America, as well as in the U.S., Germany, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

About ISG 

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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