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Nordic Enterprises Embrace SAP Cloud Platform for Mobile Applications

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Enterprises in the Nordic region are increasingly adopting the SAP Cloud Platform to create mobile applications amid COVID-19, according to the latest report from ISG (Nasdaq: III). The report highlights a growing demand for SAP S/4HANA and outcome-based pricing models as companies seek cost reductions due to the pandemic. Key players in the market include Accenture, Capgemini, and IBM, identified as leaders in various service quadrants. The report also indicates a slower adoption of the SAP Leonardo software, though service providers are developing proof-of-concept solutions.

Positive
  • Increased adoption of SAP Cloud Platform among Nordic enterprises.
  • Growing demand for outcome-based pricing models from SAP service providers.
  • Service providers are using automation and AI to enhance SAP services.
  • Noted leaders in the SAP services market include Accenture, Capgemini, and IBM.
Negative
  • Nordic enterprises are seeking price reductions or cost deferments from SAP service providers.
  • Slow adoption of SAP Leonardo software compared to other services.

STOCKHOLM, Sweden, July 31, 2020 (GLOBE NEWSWIRE) -- Enterprises in the Nordic region are increasingly adopting the SAP Cloud Platform to build mobile applications and deliver services to customers while COVID-19 social distancing guidelines remain in place, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Report for the Nordics finds enterprises in the region, including those in the retail and consumer packaged goods industries, looking to use the SAP Cloud Platform to enable mobile-based applications and contactless payments in response to the pandemic.

The report also sees Nordic enterprises slowly adopting SAP’s S/4HANA intelligent ERP system. They are looking to SAP service providers to help them move SAP S/4HANA tools to the cloud, but the COVID-19 pandemic has led companies to seek price reductions or cost deferments. Many Nordic enterprises are demanding new types of outcome-based pricing and services from SAP service providers.

“The pandemic is leading to workforce reductions, and enterprises are looking to manage the costs of their SAP installations,” said Barry Matthews, partner and leader, ISG North Europe. “Many Nordic enterprises are looking to save money through new or revamped outsourcing deals.”

Many service providers are enabling their teams to manage the SAP contract process through virtual tools, the report adds. Most providers also are allowing employees to work from home to deliver SAP-related services.

Service providers in the Nordics are focusing on the healthcare, manufacturing, retail and consumer packaged goods industries for SAP services. Some providers have developed COVID-specific offerings to help clients in niche areas and to expand their relationships with existing clients.

Providers also are using bots, automation and artificial intelligence to manage applications for their clients and to optimize business processes, the report says. Many providers are also focusing on design thinking-based tools as a way to deliver low-cost services. In many cases, bots are handling low-level support requests and resolving minor incidents without human intervention. Bots are logging support tickets, updating ticket status and reducing the time to resolution.

Service providers are also using artificial intelligence and machine learning to aid SAP transformation services, the report says. These tools and accelerators may apply to the entire development lifecycle or to portions of it.

The report also finds service providers focused on expanding local expertise in SAP. Providers are cross-training and upskilling their staffs and providing employees in the Nordics with online and SAP-certified training.

While embracing the SAP Cloud Platform, Nordic enterprises have been slower to adopt SAP’s Leonardo software and microservices delivery tool, the report says. Some providers are building Leonardo proof-of-concept demonstrations to address specific industry issues or show the benefit of the emerging technologies that Leonardo showcases.

The 2020 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Report for the Nordics evaluates the capabilities of 30 providers across four quadrants: SAP S/4 HANA System Transformation, Managed Application Services for SAP ERP, Managed Platform Services for SAP HANA, and SAP Cloud Platform and SAP Leonardo Services.

The report names Accenture, Capgemini, HCL, IBM, NTT DATA and TCS as leaders in all four quadrants and Cognizant and Tech Mahindra as leaders in three. Atos and Mindtree are named as leaders in two quadrants, and Infosys, TietoEVRY and T-Systems are named as leaders in one.

The 2020 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners 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 and Latin America, as well as in the U.S., Germany, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 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 1,300 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

 

FAQ

What is the recent trend in SAP Cloud Platform adoption in the Nordic region?

There is an increasing adoption of the SAP Cloud Platform among Nordic enterprises, particularly for mobile applications amid COVID-19.

What do Nordic enterprises demand from SAP service providers?

Nordic enterprises are seeking cost reductions and new outcome-based pricing models from SAP service providers.

Who are the leading SAP service providers in the Nordic region?

Leaders include Accenture, Capgemini, HCL, IBM, NTT DATA, and TCS, recognized across various service quadrants.

What challenges are Nordic enterprises facing with SAP services?

There are challenges with workforce reductions and slow adoption of SAP Leonardo software, leading to a demand for cost-efficiency.

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