The SAP S/4HANA contingent labor market has shifted dramatically in the past year. With SAP’s 2027 end of mainstream support for Business Suite 7 and a recession both looming, most of our client discussions centered around faster, less costly brownfield implementations. But the recession never materialized, and neither did the massive wave of brownfield implementations we were anticipating.
Instead, we’re seeing more enterprises deciding that if they’re going to make the transition to S/4HANA, they’re going to align their need for increased operational efficiency with S/4.
As SAP had hoped, greenfield implementations are increasingly the path forward particularly within the Fortune 500.
Long ago, the model for implementing new technology was to hire a business process consulting firm, reimagine and reengineer your processes, then identify the best technology platform to support them. As more organizations went down the path of SAP and ECC, this evolved into a more technology-first approach. SAP has long been a leader in guiding best-in-class processes, but there was still dynamic tension between the process and the technology. ECC guardrails but could be flexed to support customized processes and preferred third-party addons. As a result, most existing large scale ECC environments support inefficient processes along with large amounts of technical debt in the form of custom development objects increasing TCO for ERP.
While a greenfield S/4HANA implementation requires adopting SAP’s fit-to-standard business processes, there is some latitude to explore business processes within the lens of what SAP recommends and supports. And this is driving demand for a new type of hybrid expertise. For example, if an organization is defining its high-level plant operations design strategy, the most desirable consultant will have expertise in both plant operations processes and S/4HANA’s manufacturing suite capabilities. Of course, Signavio and other business process management tools help with this, but humans are still necessary to ensure the technology meets the need.
Adding to the complexity, enterprises need to begin tactical work before the design is complete, so the process consultant can’t wrap up the upfront work, then move into the tactical work. Organizations need multiple resources with hybrid expertise. Additionally, their own internal process SMEs are often balancing BPR, continued operation of the existing business, and the S/4HANA launch in parallel.
With so many large enterprises now going greenfield, it’s easy to see how the S/4HANA demand is outpacing supply.
Greenfield implementations are larger, longer programs that take the most valuable talent hybrid off the market for extended periods of time. This increases pressure on the contingent IT labor supply chain. And it’s not just finding the right talent, it’s retaining it. High demand increases the likelihood that highly skilled resources will leave mid-program for more lucrative offers. Of course, there are things you can do to prevent this like ensuring any consultants you hire are known entities with strong track records for seeing programs through to completion, but you’ll need someone to help you find them.
With earlier S/4HANA implementations, the overwhelming risk factor was the technology. Will the organization be willing to make and adopt the changes? Will it deliver the outcomes the business demanded? While enough organizations have made the transition to make a “yes” answer to both questions clear, the risk hasn’t gone away. It’s simply shifted. With the market beginning to move all at once, the risk is, can I find the right expertise when and where I need it? And it’s not just the enterprise—systems integrators (SI) are asking this question, too. So, if you’re relying on your SI to bring the resources you need to the table, they may be struggling, too.
As the market heats up, and demand for specialized S/4HANA expertise grows, it’s worthwhile to align yourself with an enterprise performance partner like Baer, vs. a traditional staffing agency. At Baer, we speak your language—we understand the ins and outs of S/4HANA implementation and track the contingent labor market to identify trends. Then, we proactively build relationships with proven expertise so we can help you access the support you need, when and where you need it.
Unlike typical technology staffing companies, Baer is a true enterprise performance partner. We have a deep understanding of the scope of enterprise digital transformation and the highly specialized skillsets you will need at different stages of the process.
To learn more about how Baer can make a positive impact on your enterprise transformation, please reach out to Brian Trout, Executive Vice President, Sales, at btrout@baergroup.com, or John Wilson, Vice President of Strategic Accounts, at jwilson@baergroup.com.