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U.K. Firms Look to SAP Solutions to Speed Recovery from Pandemic

Cloud migration and SAP S/4HANA adoption drive many enterprises’ strategies for growth and sustainability, ISG Provider Lens report says

More enterprises in the U.K. are using SAP applications, primarily in the cloud, as they pursue all possible avenues for growth and recovery from the COVID-19 pandemic, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens SAP Ecosystem report for the U.K. finds demand has risen this year in the U.K. for most types of SAP solutions, including S/4HANA transformations, managed application services, managed platform and cloud solutions and the SAP Business Technology Platform (BTP) cloud environment. This trend is occurring as more enterprises use the cloud to speed up IT expansion, integrate SAP solutions with other applications and enter new growth areas.

“Service providers are helping them decide which data to retain, how to move it to a new platform and how to ensure data quality.”

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“Service providers are helping many U.K. companies cost-effectively manage SAP applications and get new solutions out more quickly,” said Yadu Singh, EMEA lead, digital platforms and solutions, for ISG. “They are configuring more industry-specific cloud solutions to meet the growing demand.”

Cloud migration is especially strong among British midmarket companies. Adopting SAP S/4HANA cloud solutions has allowed them to start using SAP for tangible business benefits, the report says. Large enterprises are also increasing their cloud adoption, but that trend is less pronounced.

Enterprises in the U.K. are under growing pressure to meet new decarbonization goals, ISG says. SAP solutions help in these efforts, but companies are now facing a shortage of qualified talent, ISG says. SAP service providers are adding environmental, social and governance (ESG) components to their offerings and launching aggressive hiring and training initiatives to help enterprise customers meet these challenges.

Many large organizations in the U.K. also have huge amounts of data from legacy platforms, which makes migration to the cloud and SAP S4/HANA more difficult, the report says.

“Data management is a challenge for many U.K. companies,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping them decide which data to retain, how to move it to a new platform and how to ensure data quality.”

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BTP, SAP’s unified, no-code cloud environment for enterprise applications, has also gained traction in the U.K. over the past year, ISG says. Many companies are adopting BTP to integrate technologies including AI, machine learning and blockchain. Their goals include accelerating technology migrations, automating business processes and using live data from S/4HANA for real-time intelligence.

The report also examines other SAP ecosystem trends in the U.K., including the growing need for business resilience and the role of the RISE With SAP program in driving managed cloud and platform services adoption.

The 2022 ISG Provider Lens™ SAP Ecosystem report for the U.K. evaluates the capabilities of 32 providers across five quadrants: SAP S/4HANA System Transformation — Large Accounts, SAP S/4HANA System Transformation — Midmarket, Managed Application Services for SAP ERP, Managed Platform and Cloud Services for SAP, and SAP Business Technology Platform

The report names Accenture, Atos, Capgemini, HCL, TCS and Wipro as Leaders in four quadrants each. It names Tech Mahindra as a Leader in three quadrants and IBM and Infosys as Leaders in two quadrants each. Hexaware, Mindtree, NTT DATA and T-Systems are named as Leaders in one quadrant each.

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

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