6 Characteristics Every Modern SAP Managed Services Provider Needs to Have

SAP describes itself as “the world’s largest provider of enterprise application software”—and with good reason. According to a company fact sheet:

• SAP customers generate 87% of total global commerce ($46 trillion)
• 99 of the 100 largest companies in the world are SAP customers
• 85 of the 100 largest companies in the world are SAP S/4HANA customers
• Approximately 80% of SAP’s customers are SMEs (small and medium enterprises)

Let’s focus on that last bullet for a minute. SAP ERP systems (e.g., ECC and S/4HANA) and applications are business-critical and provide the potential for growth, innovation and competitive differentiation. But, these benefits don’t come automatically. Rather, reaping the rewards of SAP solutions takes work, including ongoing maintenance, enhancements and optimization. While large enterprises might have the time, resources and budget required to put in this work, many SMEs don’t—especially with the ongoing IT talent gap. Demonstrating the gravity of this continued challenge, research from McKinsey & Company found that 87% of organizations admit they either are experiencing a talent gap now or expect to within a few years.

Fortunately, SMEs working within finite constraints can tap into third-party resources to maximize their SAP solution and realize big results. That’s where SAP managed services programs come in.

What is SAP Managed Services?

SAP managed services programs are a great option for organizations that don’t have the in-house resources to implement, maintain or enhance their SAP deployments. But, it’s worth noting that not all SAP managed services are created equal.

Traditional managed services focus on things such as troubleshooting, patching and system uptime—and while these will always be elements of a managed services program, they shouldn’t be the only thing. Today’s modern SMEs need a modern SAP managed services program—one that goes above and beyond the basics, to be proactive, strategic and committed to continuous innovation. In the current dynamic business environment, modern SAP managed services programs will provide the expertise, skills and services you need to unlock the full value of SAP.

To help you in your partner search, here are six criteria to look for in a modern SAP managed services provider.

Deep Expertise for End-to-End Application Management

Modern SAP managed services are so much more than the traditional programs focused on ticket-taking and fixing the same problems over and over again. Rather, modern programs leverage deep SAP application expertise, best practices and standards to offer forward-thinking, outcome-driven solutions along every step of your application’s full lifecycle. Whether you’re looking to implement SAP for the first time or enhance an existing deployment, a modern SAP managed services partner will provide everything you need to succeed, now and in the future—from full-stack functional and technical capabilities, to advisory and support, to business process and digital transformation expertise.

Full Breadth of Managed Services

Beyond application management, there are a variety of capabilities that SAP

customers want to take advantage of—cybersecurity or supply chain support, for example—but can’t as part of a traditional SAP managed services program. This forces them to work with multiple vendors and outside consultants to get the results they want, which creates complexity, takes up time and drives up costs. Today’s modern SAP managed services, on the other hand, offer a full breadth of expertise, services and support in a much-needed holistic and integrated approach, so you can continually meet evolving technical needs and business demands using a single provider.

Flexible Contracting That Evolves with Your Needs

To ensure business success, organizations must be able to quickly adapt to changing priorities. This agility just isn’t possible with the rigid contracts offered by traditional managed services programs, which pigeonhole companies into a specific set of services (and therefore require more money and longer timelines to add anything outside the scope of the initial contract). Modern SAP managed services providers offer flexible contracts tailored to your specific needs—even as they change. They understand that services and support levels will differ each month, and they will offer you the flexibility to tap into any type of managed services as demand changes, without any contractual limitations or roadblocks.

Blended Staffing to Fill Resource Gaps On-Demand

Many organizations that lack the in-house expertise and skills required to implement, maintain, enhance and transform SAP applications and systems turn to managed services providers to help fill those gaps. But, here too, the type of support model—and the flexibility that comes with it—can vary. Traditional managed services provide a set number of hours with a defined set of resources to augment staff, which doesn’t allow for the reality of changing needs and priorities. A modern managed services program takes a more flexible approach not only to contracts, but also to staffing—providing a combination of expert skills as part of a blended FTE model. This approach enables you to change the mix of expertise and skills as your needs evolve, with a model that cost-effectively provides and adjusts resources as demand ebbs and flows.

Change Management for Long-Term Success

SAP projects don’t end after the implementation phase is complete. Long-term success requires that companies constantly adapt their SAP environments to support business workflows, new initiatives and priorities, as well as provide proper training and promote widespread user adoption—all things that come post deployment. This is why traditional managed services programs that take a “set it and forget it” approach won’t provide the long-term support you need. Instead, partner with a modern SAP managed services provider that ensures your business is set up for success long after new application processes and features are implemented. The right partner will prioritize change management and educate your staff to improve IT literacy—both of which are key factors in ensuring company adoption and empowering your team with the knowledge needed to continuously realize the benefits of SAP.

Cloud Capabilities to Drive Innovation

Whether you’re moving your ECC ERP to a hyperscale cloud as a precursor to making the leap to S/4HANA or implementing S/4HANA right off the bat through RISE with SAP, the cloud is a critical part of SAP deployments. Wherever you are on your digital transformation path, modern managed services providers can help you manage and optimize your SAP solutions on the public cloud. Partners that have a deep understanding of all major hyperscale clouds and offer specialized RISE stewardship services will be especially helpful in enabling you to maximize efficiency, agility and innovation on your SAP cloud journey.

Tap Into the Power of SAP Managed Services

Your SAP environment is at the core of your company, which makes it absolutely vital to business success. Modern SAP managed services providers, such as Navisite, can help you maximize your investment in SAP to achieve your digital transformation goals and drive business outcomes.

Navisite’s SAP Managed Services provide the full breadth of functional, technical and cloud capabilities, as well as the advisory, business process and digital transformation expertise, to help you succeed at any stage of your SAP journey. Our team has deep experience operating and supporting SAP for more than 20 years, and we’re a recognized leader in the SAP partner community for our S/4HANA services.

For more information on Navisite’s SAP Services, visit www.navisite.com/sap-services/, and to learn more about the benefits of modern SAP managed services providers, read our eBook, “Unlock the Full Value of SAP with Modern Managed Services.”