Growing complexity of SAP implementations and enterprise demand for faster ROI create new opportunities for service providers, ISG Provider Lens report says
A new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, finds substantial advancements in the SAP technology landscape are shaping market dynamics and creating demand for SAP talent in the U.K.
The 2025 ISG Provider Lens SAP Ecosystem report for the U.K. says demand for SAP-related talent continues to rise, with specific need for expertise in S/4HANA, cloud technologies, artificial intelligence and security. A shift towards contract roles is favoring project-driven approaches to meet the immediate needs of SAP implementations without long-term commitments.
"Economic uncertainties have led to cautious and strategic hiring practices focused on critical roles and cost optimization," said Anthony Drake, partner, ISG. "The growing complexity of SAP implementations has increased demand for deep, specialized knowledge and for professionals skilled in S/4HANA, particularly in finance, logistics, technical skills and data migration."
Diverse SAP market drivers including digital transformation, cloud adoption and industry-specific needs are creating opportunities for service providers to offer specialized expertise and innovative solutions and to support enterprises as they prepare for the December 31, 2027, end-of-life deadline for SAP's Business Suite 7 applications.
Challenges such as optimizing business processes to meet specific KPIs, maintaining robust security measures and addressing significant skills gaps, are all being addressed by service providers in the SAP ecosystem. Providers are now offering more comprehensive services such as specialized "bluefield" methodologies for selective data migration, robust security and compliance frameworks and managed services tailored to cloud environments.
Greater flexibility with the terms of outcome-based application managed services (AMS) contracts, is one way service providers are adapting to these market shifts. Enterprises are putting greater emphasis on leveraging AI and automation to drive efficiencies, more proactive monitoring and improved data migration processes.
Concerns among enterprises over potential vendor lock-in after joining SAP's guided transformation program RISE with SAP and GROW with SAP have led them to explore hybrid cloud strategies that would grant them greater control over their computing environments. Meanwhile, high adoption levels for these services expected among SMEs will likely drive higher demand for business transformation services.
"Service providers in the SAP ecosystem will be chosen on their ability to deliver measurable business outcomes," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "The providers that succeed in this environment will be the ones that demonstrate their expertise in data migration, security and compliance."
The report also explores other trends such as the demand for more engaging and personalized employee experiences from their platforms of choice. The integration of SuccessFactors with pre-existing HR systems is becoming a priority for optimizing HR processes and unifying the HR landscape.
For more insights into the SAP-related challenges facing U.K. enterprises, including how to migrate custom features to S/4HANA and how to help employees make the transition, plus ISG's advice for overcoming these issues, see the ISG Provider Lens Focal Points briefing here.
The 2025 ISG Provider Lens SAP Ecosystem report for the U.K. evaluates the capabilities of 39 providers across four quadrants: SAP S/4HANA Transformation, SAP Application Managed Services, Managed Cloud Services for SAP ERP and SAP SuccessFactors HXM Partner Services.
The report names Accenture, Capgemini, Infosys and Wipro as Leaders in four quadrants each. Atos, Cognizant, Deloitte, EY, HCLTech and TCS are named Leaders in three quadrants each. IBM and PwC are named Leaders in two quadrants each. Hexaware, Kyndryl, LTIMindtree, Tech Mahindra and T-Systems are named Leaders in one quadrant each.
In addition, Atos, Hexaware, LTIMindtree, Strada and UST are named as Rising Stars companies with a "promising portfolio" and "high future potential" by ISG's definition in one quadrant each.
In the area of customer experience, Wipro is named the global ISG CX Star Performer for 2025 among SAP ecosystem providers. Wipro 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.
The 2025 ISG Provider Lens SAP Ecosystem report for the U.K. 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, Mexico, 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 (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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Contacts:
Sarah Ye, ISG
+44 7833 567868
sarah.ye@isg-one.com
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
