ISG
As the clock winds down on SAP’s support for its ERP Central Component (ECC) system, adoption of the company’s RISE with SAP offering is on the upswing among Nordic enterprises, 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 the Nordics finds a notable increase in demand from large enterprises over the past 12–18 months for both on-premises and cloud deployment of S/4HANA. Much of that increase can be attributed to the RISE with SAP program, which offers tools, services and software to help large enterprises adopt SAP solutions, the ISG report says.
SAP is pushing companies to implement S/4HANA as it ends support for its on-premises SAP ECC system at the end of 2027.
“Growing interest among Nordic businesses in RISE with SAP has increased demand for managed cloud services outsourcing,” said Andreas Fahr, partner and head of ISG DACH and Nordics. “Providers are responding by demonstrating their flexibility in accommodating SAP ERP applications across public and private cloud infrastructures.”
With increasing demand for transformation services, SAP and service providers are strategically aligning to offer either public or private cloud solutions depending on enterprise preferences, the ISG report says. While private cloud is currently still the favored choice among enterprises for SAP applications, the landscape of cloud adoption in the Nordics is evolving, ISG says. According to the report, recent market trends indicate a growing demand for public cloud alternatives.
To accommodate this demand, providers are enhancing their operations and introducing new services, actively refining their tools, accelerators and functionalities to deliver tangible benefits to clients, the report says. That includes integrating automation and AI into tools and accelerators for SAP transformations and managed services. In addition, providers are offering industry-specific road maps tailored to meet specific client needs and focusing on reducing time to market, ISG says.
“Nordic enterprises are looking for providers that are capable of delivering services with minimal lead time,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “That has prompted providers to bolster their skilled resource strength in the region and led to an increase in certified onshore resources.”
The report also examines emerging trends in application managed services (AMS) outsourcing in the Nordic region.
For more insights into the SAP ecosystem challenges facing enterprises in the Nordics, including finding needed talent and managing complex cloud applications, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ SAP Ecosystem report for the Nordics evaluates the capabilities of 31 providers across three quadrants: SAP S/4HANA System Transformation, SAP Application Managed Services and Managed Cloud Services for SAP ERP.
The report names Accenture, Capgemini, Eviden (an Atos Business), HCLTech, TCS and Tietoevry as Leaders in all three quadrants, while Cognizant, IBM, PwC and Tech Mahindra are named as Leaders in two quadrants each. Infosys, Kyndryl, T-Systems and Wipro are named as Leaders in one quadrant each.
In addition, Wipro is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while DXC Technology is named as a Rising Star in one quadrant.
In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2024 among SAP Ecosystem partners. The provider 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.
A customized version of the report is available from Tietoevry.
The 2024 ISG Provider Lens™ SAP Ecosystem report for the Nordics 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.
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