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Some German Enterprises Are Remaining Cloud Cautious

$III #ISGProviderLens--With time running out on support for its ERP Central Component (ECC), Germany-based SAP has concentrated on the “cloudification” of its offerings, yet not all German enterpr...

Business Wire

Midmarket firms are looking for providers to accompany them for the duration of their SAP S/4HANA transformation journey, ISG Provider Lens™ report says

FRANKFURT, Germany: $III #ISGProviderLens--With time running out on support for its ERP Central Component (ECC), Germany-based SAP has concentrated on the “cloudification” of its offerings, yet not all German enterprises are in a hurry to follow the company’s lead, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ SAP Ecosystem report for Germany finds the general trend toward cloud migration will continue, even if German enterprises are more cautious than companies in other markets. The approaching end of ECC support in 2027 has not yet resulted in the expected surge in transformation business, with many German customers adopting a wait-and-watch approach, the ISG report says.

“When that surge finally does come, providers will be ready,” said Dr. Matthias Paletta, director, technology modernization, for ISG in Germany. “Those equipped with effective methods and tools for quick and low-risk transformations will be poised for success.”

In the meantime, some German enterprises are still grappling with outdated legacy systems, fragmented IT landscapes, security concerns, and the challenge of maintaining quality standards across their IT landscapes, the ISG report says. This can lead to inefficiencies, increased risk of defects, high operational costs and longer time-to-market, the report says.

The reluctance to quickly adopt cloud solutions has been the most conspicuous among small and medium-sized enterprises in Germany, the ISG report says. Yet providers have demonstrated readiness for the inevitable transformation on multiple fronts. They have been diligent in addressing possible gaps in their consulting offerings, resulting in a convergence of leading providers’ service portfolios, the report says. These providers are positioning themselves as one-stop shops, capable of handling all aspects of a transformation project, ISG says.

Midmarket enterprises are seeking partners that can guide them in their end-to-end SAP S/4HANA transformation journey, the ISG report says. They are focused on cost savings and improved efficiency through streamlined processes and enhanced functionalities, the report says. However, these same companies often require industry-specific transformation solutions, a preference that typically increases time-to-market, ISG says.

“Enterprises should partner with service providers that can provide robust consulting and advisory services to guide them with the right adoption strategy and deliver end-to-end implementation support,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The right provider should have strong industry expertise and proprietary tools to ensure the standardization of complex processes, smoother implementation and the integration of technologies.”

The report also examines the growing demand for resilient and sustainable processes, especially in supply chains.

For more insights into the challenges faced by German enterprises in the SAP ecosystem, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ SAP Ecosystem report for Germany evaluates the capabilities of 56 providers across five quadrants: SAP S/4HANA System Transformation for Large Accounts, SAP S/4HANA System Transformation for Midmarket, SAP Application Managed Services, Managed Cloud Services for SAP ERP and SAP SuccessFactors HXM Partner Services.

The report names Accenture, All for One Group, Capgemini, Eviden (an Atos Business) and Infosys as Leaders in four quadrants each, while NTT DATA, T-Systems and Wipro are named as Leaders in three quadrants each. Cognizant and TCS are named as Leaders in two quadrants each, while Arvato Systems, CANCOM, DATAGROUP, Deloitte, HCLTech, Kyndryl, Pentos and Syntax are named as Leaders in one quadrant each.

In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Birlasoft, cbs, EPI-USE and Syntax are named as Rising Stars in one quadrant each.

In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2024 among SAP Ecosystem providers. Infosys earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Capgemini and T-Systems.

The 2024 ISG Provider Lens™ SAP Ecosystem report for Germany 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, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 AI and 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 1,600 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.

Fonte: Business Wire

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