U.K. SAP Market Sees Strong Demand for S/4HANA Skills: Insights from ISG's 2025 Provider Lens Report

The ISG report reveals that the demand for SAP-related expertise is on the rise, with a notable emphasis on skills in S/4HANA, cloud technologies, artificial intelligence, and security. This demand is fueled by enterprises' urgent need to implement SAP solutions amid ongoing economic uncertainties, prompting a shift towards contract roles that allow for flexibility and project-based approaches.

Anthony Drake, a partner at ISG, noted, “Economic uncertainties have led to cautious and strategic hiring practices focused on critical roles and cost optimization.” He underscored the complexity of SAP implementations, which is driving the need for professionals with deep, specialized knowledge, especially in finance, logistics, technical skills, and data migration.

The report identifies several key drivers influencing the U.K. SAP market, including digital transformation, cloud adoption, and industry-specific requirements. These factors are creating opportunities for service providers to deliver specialized services and innovative solutions to assist enterprises in transitioning away from SAP's Business Suite 7 applications, which will reach the end-of-life deadline on December 31, 2027.

However, challenges remain. Businesses are grappling with the need to optimize processes to meet specific KPIs, ensure robust security measures, and address significant skills gaps. Service providers are responding by offering more comprehensive services, including specialized “bluefield” methodologies for selective data migration and tailored managed services for cloud environments.

As enterprises prioritize the optimization of their SAP environments, service providers are increasingly flexible with the terms of outcome-based application managed services (AMS) contracts. The emphasis on leveraging AI and automation to enhance efficiencies and improve data migration processes is evident as organizations seek to adapt to evolving market demands.

Concerns regarding vendor lock-in, particularly following participation in SAP’s guided transformation program RISE with SAP and GROW with SAP, have prompted enterprises to explore hybrid cloud strategies. Such strategies allow for greater control over computing environments, a critical factor as small and medium-sized enterprises (SMEs) are expected to drive higher demand for business transformation services.

The 2025 ISG Provider Lens™ SAP Ecosystem report 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.

Accenture, Capgemini, Infosys, and Wipro were named Leaders in four quadrants each, reflecting their extensive capabilities and market influence. Additionally, Atos, Cognizant, Deloitte, EY, HCLTech, and TCS were recognized as Leaders in three quadrants, while IBM and PwC were acknowledged as Leaders in two. Hexaware, Kyndryl, LTIMindtree, Tech Mahindra, and T-Systems each emerged as Leaders in one quadrant.

The report also highlighted Rising Stars—companies with promising portfolios and potential—such as Atos, Hexaware, LTIMindtree, Strada, and UST, each recognized in one quadrant.

Notably, Wipro was awarded the title of the global ISG CX Star Performer for 2025 among SAP ecosystem providers, achieving the highest customer satisfaction scores in ISG's Voice of the Customer survey.

The 2025 ISG Provider Lens™ SAP Ecosystem report underscores the dynamic landscape of the U.K. SAP market, characterized by a strong demand for specialized skills and a shift towards flexible, project-driven service models. As enterprises navigate the complexities of SAP implementations and the impending end-of-life for legacy systems, providers that can deliver measurable business outcomes will be instrumental in shaping the future of enterprise technology in the region. For more detailed insights into the report and the challenges facing U.K. enterprises, access to the full report is available for subscribers or through one-time purchase options.