Postponing innovation, particularly around S/4HANA transformation is no longer an option—not only is ECC end of mainstream support looming, but organizations must make the transition to take advantage of AI-driven efficiencies and insights and stay competitive. However, post-pandemic, many enterprises and systems integrators significantly scaled back internal technology staff and reined in budgets. It’s making for a very complex and fragmented labor ecosystem, and as demand continues to escalate into 2025, the market will become increasingly compressed.
The situation is giving rise to new risks particularly around offshore models. But there are steps you can take to mitigate those risks and keep your transformation on track.
Offshore delivery can play a vital role in your S/4HANA transformation resource plan. It can be an efficient and cost-effective solution when you need to move fast, domestic resources are limited, and budgets are tight. As driving down the cost of large-scale implementation continues to be a foundational element of the IT service ecosystem, systems integrators continue to refine their implementation approaches to maximize the role of their global development centers across the transformation program lifecycle. They have been careful to identify top-tier resources and maintain integrity with onshore implementation teams, and the quality is excellent.
But offshore is not without risks. Time zone differences and communication gaps are what typically come to mind. And as the market ramps up and more work is sent offshore, premium vendors may take on more than they can handle—timelines could slip. If your first choice of vendor isn’t available, you may have to go with someone less proven. The bigger risk, though, is that it is difficult to have true visibility into the work being done. S/4HANA is so complex and evolves so rapidly.
The big concern our clients are voicing is that they want to be sure the work that is being delivered aligns with SAP’s current best practices. They need to know they can trust the quality, and this is giving rise to a new role—the independent auditor. This is truly an emerging trend; we are fielding calls from clients seeking independent auditors to review work delivered by offshore teams and ensure it aligns with SAP best practices. It remains to be seen if this will gain more traction.
Taking a lesson from the physical supply chain disruptions of the early pandemic, perhaps the single, most important thing you can do to mitigate the risks associated with offshore delivery models is to diversify your labor supply chain. By that, I mean aligning yourself with a domestic enterprise performance partner like Baer that proactively builds relationships with proven talent and can ensure you can find the expertise you need when and where you need it. That way, whatever need arises—specialized expertise, surge capacity, an independent auditor—you have someone you can call on to bridge the gap.
If you would like to explore options for staffing your SAP S/5HANA or other technology transformation, Baer is here to help!
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.