Service providers deploy new technologies to reduce client concerns about risks, delays in moving to cloud, ISG Provider Lens™ report says
U.S. enterprises are becoming more open to SAP S4/HANA cloud migration with advances in generative AI and real-time analytics, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens™ SAP Ecosystem report for the U.S. finds that enterprises remain cautious about moving from on-premises SAP ECC environments to cloud-based SAP S/4HANA. This is true even in the U.S., SAP's largest and most technologically advanced market. In response, SAP has delayed the end of support for SAP ECC 6.0 from 2025 to 2027, with extended support until 2030 available at a premium. Its ecosystem partners are using new technologies and industry-specific expertise to make cloud migration easier and more attractive to potential clients.
"Many companies are worried about how long it might take to complete an S/4HANA migration and realize a strong return on investment," said Bill Huber, ISG partner, digital platforms and solutions. "Providers are using real-time analytics and GenAI to show clients the potential operational improvements and strategic advantages."
Migration from SAP ECC to S/4HANA often requires complex data extraction, transformation and loading activities to ensure data accuracy and integrity, ISG says. Over the past 12 months, enterprises have started to understand GenAI's potential to prepare them for this transition. Service providers are using GenAI to deeply evaluate clients' SAP ECC environments and address their concerns about preserving the way they do business. This helps companies choose among greenfield, brownfield and bluefield implementation strategies. The ability to perform real-time analytics on enterprise data is another benefit of S/4HANA that enterprises are beginning to explore.
Service providers are using GenAI and other new technologies as part of a more customer-centric approach to S/4HANA migration, ISG says. They are building up consulting services, including readiness assessments, and presenting industry-specific use cases relevant to each client, ISG says. This approach aligns with enterprise expectations, as many companies are seeking end-to-end services from one provider to streamline cloud migration.
Greenfield migrations, which involve establishing completely new SAP implementations on S/4HANA, make up about 45 percent of all projects, but this percentage has fallen in recent years, ISG says. Small and midsize enterprises are more likely to take this approach. The strongest growth now is in brownfield projects, which give enterprises more control over which data and functions to move to the cloud, and bluefield implementations, which take a phased approach.
"Most large companies in the U.S. consider greenfield implementations of SAP too risky," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Providers are helping them take more gradual approaches."
The report also explores other SAP ecosystem trends in the U.S., including the growth of service provider workforces and the rising popularity of prefabricated best-practices templates for implementation.
For more insights into the SAP-related challenges facing U.S. 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.S. evaluates the capabilities of 45 providers across five quadrants: SAP S/4HANA System Transformation — Large Accounts, SAP S/4HANA System Transformation — Midmarket, SAP Application Managed Services, Managed Cloud Services for SAP ERP and SAP SuccessFactors HXM Partner Services.
The report names Accenture, Capgemini, Infosys, TCS and Wipro as Leaders in four quadrants each. It names Cognizant, Deloitte, EY, HCLTech and IBM as Leaders in three quadrants each. Atos, Birlasoft, DXC Technology, Hexaware, Kyndryl, LTIMindtree, NTT DATA, Strada, Syntax, Tech Mahindra and UST are named as Leaders in one quadrant each.
In addition, DXC Technology is named as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG's definition — in two quadrants. Cognitus, Hexaware, KaarTech and Syntax are named as Rising Stars in one quadrant each.
In the area of customer experience, Wipro is named the global ISG CX Star Performer for 2025 among SAP Ecosystem U.S 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.
Customized versions of the report are available from Cognitus and Hexaware.
The 2025 ISG Provider Lens™ SAP Ecosystem report for the U.S. 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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