If you are planning, launching, or advancing an SAP S/4HANA transformation, developing an integrated resource plan that outlines the type of expertise you will need to undertake the program, where you will source it from, and what your budget is, is a smart approach. Most organizations use a mix of tactics—relying on their systems integrators, directly hiring contingent expertise, and leveraging their own team. But the S/4HANA labor supply chain is complex and many of the skillsets needed are highly specialized.
But finding the right expertise, at the right time, for the appropriate investment can be more challenging than you’d think, especially in a competitive contingent labor market.
At Baer, we are continually looking down the innovation curve and mining our data to understand where the SAP labor market is headed. Following are five key data-driven insights to help you in developing an integrated resource plan.
In the first half of 2024, Baer saw a 22% increase in overall job volume and a 17% increase in job requests from systems integrators. Since then, volume has continued to rise. One key factor driving this increase is unprecedented parallel investment by the Federal government, broader public sector, and the enterprise. If the trend continues as we anticipate it will, expect significant labor compression in 2025.
Explore Baer’s in-depth job volume and market impact insights.
For any organization kicking off an S/4HANA transformation in 2025, understanding the financial impact of contingent labor is critical. Pay rates rose substantially in the 2021/2022 competitive labor market. This year, payrates for HCM and technology expertise have increased markedly, while finance payrates have stabilized and SCM rates are down. We typically see rates increase in parallel with demand, so they may rise substantially in 2025’s anticipated competitive market. Make sure you budget accordingly.
Read Baer’s in-depth S/4HANA payrate analysis.
Demand for finance, technical, and human resources expertise—skills that cut across all verticals—is on the rise. This relates to other trends: most organizations begin their transformations in finance, technical expertise is an evergreen need, and HCM transformations (and payrates) are increasing. Specifically, external accounting skills like FSCM, application development, Success Factors, H4S4 Cloud Payroll expertise are experiencing the greatest demand.
Read Baer’s in-depth evaluation of what S/4HANA skillsets have the greatest demand.
In addition to increased Federal government and broader public sector investment, we are also seeing a good deal of growth are supply chain & manufacturing (SCM) and aerospace & defense. High-demand SCM skillsets include Extended Warehouse Management, Transportation Management, Advanced Available-to-Promise, and Production Engineering and Optimization. Vertical-focused demand is common in the S/4HANA arena, as industries tend to move all at once. But even if you are in an industry where demand isn’t quite as strong, expect ripple effects, especially in areas like finance, technology, and HCM that cut across all verticals.
Read Baer’s in-depth analysis of SCM trends and their impact on the broader SAP ecosystem.
In 2019, most S/4HANA transformations were fully onsite, but the pandemic brought a watershed shift in approaches—it was a fully remote world. 2023 saw the rise of return-to-office (RTO) mandates. Since then, the RTO bubble has popped, and hybrid roles are the way forward. Flexibility will be key to getting and retaining talent as the market becomes more competitive.
Read Baer’s in-depth S/4HANA comparison of year-over year, on-site, fully remote, and hybrid trends.
The 2025 S/4HANA contingent labor market is shaping up to be on of the most competitive we’ve seen since 2021/2022. If you are primarily relying on your systems integrator to bring expertise to the table, know that they will be strapped for talent, too. As more transformations get underway, it will become increasingly more difficult and costly to find the talent you need. To mitigate risk, you would be well served by establishing a relationship with an enterprise performance partner like Baer. We are paying close attention to these trends, identifying the areas of greatest need, and proactively building relationships with proven talent to ensure that our clients can execute their S/4HANA programs on time and within budget.
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.