III Information Services Group Inc.

Future Looks Bright for SAP Providers in Germany

Germany is becoming the epicenter of major SAP projects, as the market is fueled by growing enterprise adoption of S/4HANA, according to a new research report published today by Information Services Group () (Nasdaq: ), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ SAP Ecosystem report for Germany finds German service providers are almost universally buoyant about the current SAP market, with many anticipating exponential growth in the coming years. The primary reason these providers are so upbeat is the looming discontinuation of SAP’s support for its predecessor systems, ECC and SAP Business Suite, both of which will expire by the end of 2027.

“Service providers are actively preparing for the coming transition to S/4HANA,” said Dr. Matthias Paletta, director, technology modernization, for ISG in Germany. “Many of them are responding by expanding their partnerships with SAP as well as with hyperscalers.”

As the discontinuation of support for ECC and Business Suite draws nearer, the number of transformation and managed services projects is increasing, the ISG reports says. This increase, which applies to all industries and company sizes, will intensify in the coming years. As a result, the shortage of available market resources, already noticeable today, will become even more acute, ISG says.

Providers are working to fill any gaps in their portfolios, including developing industry-specific capabilities, and are emphasizing unique selling points and added value to attract customers.

According to the ISG report, templates, automation and partnerships all provide potential competitive advantages. They stabilize service quality, improve and predict results easily, and shorten runtimes for individual activities and complete transformation programs. All of these in turn help to enhance the customer experience in the real project environment. Not only that, but they also free up crucial resources on the provider side that can be allocated for nonautomated activities, ISG says.

“For many German enterprises, local service remains important,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “That’s why global providers have significantly strengthened their German-based workforces.”

The report also examines the increased demand in Germany for cloud-based SAP offerings and contrasts it with a continuing hesitation on the part of many German enterprises to embrace the RISE with SAP program.

The 2023 ISG Provider Lens™ SAP Ecosystem report for Germany evaluates the capabilities of 46 providers across four quadrants: SAP S/4HANA System Transformation – Large Accounts, SAP S/4HANA System Transformation – Midmarket, Managed Application Services for SAP ERP and Managed Platform and Cloud Services for SAP ERP.

The report names Eviden (Atos) as a Leader in all four quadrants, while Accenture, All for One Group, Capgemini and T-Systems are named as Leaders in three quadrants each. Cognizant, Infosys, NTT DATA, TCS and Wipro are named as Leaders in two quadrants each, while Arvato Systems, CANCOM, DATAGROUP, Devoteam, Fujitsu, Innovabee, Kyndryl and Syntax Systems are named as Leaders in one quadrant each.

In addition, DXC Technology is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. HCLTech, Infosys and LTIMindtree are named as Rising Stars in one quadrant each.

A customized versions of the report is available from

The 2023 ISG Provider Lens™ SAP Ecosystem report for Germany is available to subscribers or for one-time purchase on this

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 .

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: ) 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 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 1,600 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 .

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06/06/2023

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