teknowlogy releases newest SAP services rankings at global and regional levels - good news, most players are growing

SAP has expended its portfolio and coverage in the last decade, primarily through several acquisitions: SuccessFactors, Ariba, Hybris, Callidus, Gigya, or Qualtrics, to mention only the high-profile ones. This way SAP customers can expand their SAP landscapes from the core ERP to additional business processes, either in the back office or in the front, for their relations with customers and suppliers.

Even if the SAP services market is not the fastest-growing one as a whole, teknowlogy sees a deep transformation from legacy apps and platforms towards new – new applications, including cloud-based, and the new platforms SAP Cloud Platform and SAP HANA.

teknowlogy Group dedicates an entire cluster of reports and rankings to the SAP-related services, analyzing the main SAP services providers, the hot topics in this technology area, as well as our view on the development of the SAP-related services business for SAP partners.

At this time, teknowlogy is publishing its rankings for the SAP services providers, at the global level, as well as regionally (EMEA, Americas, APAC). In 2018, most of the top players showed positive development, being fueled by the SAP transformation from legacy to SAP S/4HANA, and the implementations of the business line products (HR, procurement, commerce/ customer experience).

The SAP services providers can be clustered in a few groups:

  • the large systems integrators, with a complete portfolio from consulting & systems integration (C&SI) to application management (AM) and SAP hosting, and global coverage: Accenture, IBM, Capgemini, Atos, DXC, CGI, NTT Data (incl. intelligence);
  • the “consultants” that focus on C&SI, and some AM, with global coverage in the large enterprises segment: Deloitte, EY, PWC, KPM;
  • the regional players – All for One Group, msg group, SNP Group, Tieto (EMEA), NEORIS, Stefanini (Americas), NEC, Digital China, Neusoft, Samsung SDS (APAC).

There are no major surprises in terms of development, with the market being dominated by the large global services players, with Accenture as the comfortable leader for some years now, globally, but also by each region. SAP itself is a strong services player, even if nowadays the partners have the lead. All the large players have developed their own methodologies, and even IP, to support and optimize such complex transformations, also utilizing their long-term industry expertise.

Most of the top players increased their SAP services business in 2018; however, some of them stand out from the growth perspective, and EY is the fastest one. After high investments in the last couple of years, the results are coming for EY. Coming from financial and business consulting, EY is active only in the consulting and system integration segment. Out of the top 20, only three players had negative performances: IBM, T-Systems, and Fujitsu (which also had the highest drop). Although recovering in C&SI, IBM still had negative results in the long-term business (AM and SAP outsourcing).

The SAP transformation wave is only at the beginning if we consider the total number of SAP customers that are expected to shift to S/4HANA by 2025. Thus, the revenues in the SAP ecosystem will be in effervescence by that timeline and beyond. The service providers will be pushed to further innovate in order to cope with the lack of resources, and to support their customers in smooth transformation projects that will bring the expected business benefits.