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Enterprises Look for Help with SAP Legacy Applications

ISG Provider Lens™ report finds many enterprises still reluctant to move to newer versions of SAP products, despite plan to stop supporting older tools

STAMFORD, Conn., Oct. 28, 2019 /PRNewswire/ -- Companies using SAP legacy applications for their enterprise resource planning needs are looking for service providers to help them update their SAP software and balance legacy and customized applications, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2019 ISG Provider LensSAP S/4HANA Services Archetype Report finds enterprises across the globe taking a customized, business-needs approach to SAP S/4HANA adoption, with most thoroughly evaluating their requirements before updating their ERPs.

S/4HANA can help enterprises "deal with increased complexity, highly customized applications and large databases," said Jan Erik Aase, director and global leader of ISG Provider Lens Research. "The product helps customers simplify data and applications, and at the same time, offer a rich user experience."

Still, many enterprises are reluctant to migrate to newer versions of SAP ERP tools, even as the company plans to sunset support for its ERP Central Component 6.0 by 2025, the report says. Service providers are maintaining and managing these legacy ERPs.

Those enterprises still not ready to migrate to newer versions may eventually need help from service providers to create an SAP roadmap, the report says.

In addition to maintaining legacy installations and assisting with migration roadmaps, many service providers evaluated in the report offer industry-specific templates for SAP S/4HANA, including for the manufacturing, retail, consumer packaged goods and utilities industries. Enterprise customers, the report says, are seeking these targeted tools to help them in their transformation journeys to become intelligence enterprises and to achieve faster time-to-market.

The 2019 ISG Provider Lens SAP S/4HANA Services Archetype Report examines four different types of clients, or archetypes, that are looking for SAP-related services. The report evaluates the capabilities of 17 providers to deliver services to the four archetypes:

Transactional Users: These customers have SAP ERP Central Component or R/3 as an existing ERP solution and are seeking services to manage those applications. They are reluctant to move to a different ERP, primarily due to resistance to change, lack of investment, inability to manage complex SAP environments and lack of skillsets.

Technical Transitioners: These customers intend to implement SAP S/4HANA and have SAP ERP Central Component as their existing ERP offering. They want to implement SAP S/4HANA through Suites on HANA or brownfield conversions for both on-premises and cloud installations. They want to achieve stability in their business processes and IT application landscapes.

Landscape Transformers: These companies want to realize the benefits of S/4HANA and are ready to invest in an integrated ERP system as soon as possible. Their leadership teams are prepared for an organizational process change and want to work toward a new ERP system to realize the benefits of responsive applications and a rich user interface.

Digital Futurists: These customers seek digital transformation using SAP S/4HANA and emerging technologies such as machine learning, artificial intelligence and blockchain. They intend to move from existing application architecture and leverage the power of emerging technologies to provide value to their customers.

Among the providers ISG evaluated, Capgemini, Cognizant and Infosys were named leaders across all four archetypes. Accenture, DXC Technology and Tech Mahindra were named leaders in three archetypes, while Atos, HCL, IBM, Mindtree and Wipro were named leaders in two. Deloitte and NTT DATA were named leaders in one archetype.

A custom version of the report is available from Tech Mahindra.

The 2019 ISG Provider Lens SAP S/4HANA Services Archetype Report is available to ISG Insights™ subscribers or for immediate, one-time purchase on this web page.

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., the Nordics and Brazil, 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. 

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 70 of the top 100 enterprises in the world, 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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