PRN: UPDATE: With Brexit Concerns, UK Enterprises Cautious About SAP Adoption

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With Brexit Concerns, UK Enterprises Cautious About SAP Adoption


ISG Provider Lens™ report finds U.K. enterprises opting for smaller SAP S/4HANA provider engagements to maintain flexibility in light of Brexit

LONDON, Aug. 13, 2019 /PRNewswire/ -- Enterprises in the U.K. are cautious about adopting SAP S/4HANA and other SAP products, given the uncertainty surrounding the country's exit from the European Union, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2019 ISG Provider Lens™ SAP HANA and Leonardo Ecosystem Partners report for the U.K. finds a marginal increase in SAP HANA adoption in the U.K., due to Brexit concerns. Smaller enterprises and those without legacy constraints are moving to cloud adoption of SAP S/4HANA, but the move is "subtle," the report said, given there "isn't strong momentum to adopt HANA because of economic uncertainty."

Many U.K. enterprises are looking to service providers to help them with migration strategies to adopt the S/4HANA ERP software package, either through clean-slate installations (greenfield), updates from existing SAP installations (brownfield) or selective installations (bluefield).

"Despite the uncertainty over Brexit, there is expected to be slight growth in SAP adoption across the U.K.," said Barry Matthews, partner and head of ISG UK. "Enterprises that already have an ECC solution or an SAP-based IT architecture, and those that are planning to implement S/4HANA on a long-term basis, are the ones typically opting for smaller engagements. These engagements allow enterprises to address their short-term IT needs and make future plans, while maintaining the flexibility to manage the needs and contingencies arising from Brexit."

Many SAP service providers in the U.K. are monitoring the economic impact of Brexit and are assessing potential risks from the transition out of the EU. In the meantime, providers are building industry-specific solutions and accelerators for S/4HANA and SAP Leonardo, particularly for the manufacturing, retail, consumer packaged goods and utilities industries. These tools are aimed at helping enterprise customers that seek implementation expertise and business agility. Customers are looking for these targeted solutions from providers to help them become intelligent enterprises and achieve faster time-to-market.

In addition, SAP service providers are beginning to use software bots in application maintenance services to respond to basic activities such as logging a ticket and reducing time to resolution. Bots are helping service providers reassign staff to higher value and more complex tasks, the report says.

SAP providers also are using artificial intelligence and machine learning to help provide transformation services, the report says. These automated tools and accelerators may apply to the entire development lifecycle or address parts of it.

The report also examines the SAP Leonardo market and finds many enterprises slow to adopt the software and microservices package that enables customers to leverage technologies like the Internet of Things, machine learning, blockchain, analytics and big data. Many service providers are using SAP Leonardo to build proof-of-concept demonstrations to help address specific industry issues or empower enterprises with emerging technologies, the report says.

The 2019 ISG Provider Lens™ SAP HANA and Leonardo Ecosystem Partners report for the U.K. evaluates the capabilities of 19 providers across four quadrants: SAP S/4HANA & Business Suite on HANA Transformation, SAP S/4HANA & Business Suite on HANA Managed Services, SAP BW/4 on HANA and BW on HANA Transformation & Operations and SAP Leonardo Transformation.

The report names Accenture, Capgemini and Mindtree as leaders in all four quadrants, while naming HCL and Wipro as leaders in three; Cognizant, NTT DATA and Tech Mahindra leaders in two, and Atos a leader in one.

A customized version of the report is available from Mindtree.

The 2019 ISG Provider Lens™ SAP HANA and Leonardo Ecosystem Partners report for the U.K. is available to ISG Insights™ 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., the Nordics and Brazil, 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.

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 70 of the top 100 enterprises in the world, 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 dig! ital-read y professionals operating in more than 20 countriesâ€�”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

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Company Codes: NASDAQ-NMS:III
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