PAC RADAR: SAP Services in Germany 2022

Munich, January 11, 2022 – The German SAP market is undergoing fundamental change. This is not only due to SAP S/4HANA migration, which has been on many SAP users’ mind, but also to new requirements brought about by digitalization and to public cloud-based operating models. This change is a challenge also for IT service providers. They need suitable delivery models, specialized consultants, agile sourcing models, and innovative migration methodologies to be able to provide expert advice and support to SAP users.

Against this background, market research and advisory firm PAC presents its new PAC RADAR series “SAP Services in Germany 2022”. In 10 different PAC RADAR analyses, we assess a total of 22 IT service providers, evaluating their specific strengths and weaknesses on the basis of nearly 100 individual criteria. The results are illustrated in 10 PAC RADAR graphs which provide a quick overview of the positioning of the most relevant players in each segment. The IT service providers evaluated in our PAC RADAR series “SAP Services in Germany 2022” include, among others, Accenture, Arvato, Atos, BTC, Cognizant, Infosys, Kyndryl, q.beyond, Reply, T-Systems and Wipro.

Figure: PAC RADAR “SAP C&SI in Germany 2022”,
one of the 10 graphs in our latest PAC RADAR series

The IT service providers that have been evaluated in the PAC RADAR “SAP Consulting & Systems Integration” (see RADAR graph above), for instance, account for nearly 50% of total market volume for SAP C&SI services in Germany. The group of providers analyzed is very heterogeneous, ranging from well-established global service providers with tens of thousands of certified SAP consultants around the globe and extensive offshore and nearshore resources, to national providers with a few hundred local SAP experts and a focus on the German mid-market.

Irrespective of their size, however, nearly all providers cover the entire C&SI-related value chain, from consulting through implementation to testing and training. Topic-wise, most of them focus on classic ERP solutions (e.g., ECC and R3). In addition, many offer C&SI services for SAP’s SaaS applications, such as SuccessFactors, Fieldglass, and Ariba, as well as for SAP’s CX portfolio (SAP Commerce Cloud, SAP Sales Cloud, etc.). Without exception, all providers have added services for SAP S/4HANA migration projects to their portfolio.

External support for SAP S/4HANA migration

SAP S/4HANA may well be the biggest challenge for the German SAP community right now, and migration will be hard to accomplish without external help from experienced IT providers. “SAP S/4HANA migration is complex because it involves implementing a fundamentally new ERP environment whose technological basis, application architecture, and data management are different from previous SAP implementations. Against this backdrop, the selection of a service partner to accompany your migration should be well thought out,” points out Joachim Hackmann, Vice President Enterprise Applications and Related Services, who co-authored the latest PAC RADAR series. The PAC RADAR analyses provide help with provider selection.

The shift to public cloud is changing the IT services vendor landscape

Nearly all SAP S/4HANA migration scenarios also involve considering cloud-based operating models, which are increasingly implemented as cloud-based hosting services. For this reason, the selected IT providers should not just have in-depth know-how in cloud migration, but also in hosting services. “Hybrid models will be the dominant hosting architectures in the foreseeable future,” says Karsten Leclerque, Head of Infrastructure & Cloud Services Practice, and RADAR co-author. “This gives an edge to those SAP hosting providers that are equally well positioned in public and private cloud-based hosting.”

Our latest PAC RADAR series

The PAC RADAR is an effective tool for the holistic evaluation and visual positioning of software vendors and IT service providers on local markets. With the help of predefined criteria, PAC evaluates and compares providers’ strategies, development, and market position, in addition to their performance within specific market segments. Each PAC RADAR focuses on a specific IT market segment.

This PAC RADAR series analyzes the entire IT service value chain around the main SAP solutions. There are a total of eight topic-related PAC RADARs (SAP Consulting & Systems Integration, SAP Application Management, SAP Hosting, Public Cloud-based SAP Hosting, Legacy & Private Cloud-based SAP Hosting, SAP CX-related Services, SAP SuccessFactors-related Services, and SAP S/4HANA-related Services), plus two customer group-specific SAP Services RADARs, one for small and medium-sized businesses and one for large accounts.

For more information on the PAC RADAR series “SAP Services in Germany 2022”, please go to https://www.pac-radar.com

About teknowlogy Group:

teknowlogy Group is your partner of choice for European focused IT market data, insights and advice. It brings together the expertise of two research and advisory firms, each with a strong history and local presence in the fragmented markets of Europe: CXP and PAC (Pierre Audoin Consultants). We are a content-based company with strong consulting DNA. We are the preferred partner for European user companies to define IT strategy, govern teams and projects, and de-risk technology choices that drive successful business transformation. We have a second-to-none understanding of market trends and IT users’ expectations. We help software vendors and IT services companies better shape, execute and promote their own strategy in coherence with market needs and in anticipation of tomorrow’s expectations. Capitalizing on more than 40 years of experience, we are active worldwide with a network of 50 experts. For more information, please visit www.teknowlogy.com and follow us on Twitter or LinkedIn.

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