While SAP systems can significantly help businesses manage and streamline key operations, managing in-house SAP development and support teams can be a substantial undertaking. As a universal component of business IT infrastructure and the largest ERP vendor globally, SAP systems have gained the status of the third-biggest public trading software company. Considering the time and resources required to administer SAP, many companies consider outsourcing SAP development and support. In this blog, we talk about the various benefits your company can avail of by choosing a reputed SAP service provider partner for your business needs.
Benefits of Outsourcing SAP Services
The bottom line for every company to achieve the desired return on investment is a reduction of costs, and outsourcing SAP services and support can be a major step toward this objective. SAP outsourcing can be cost-effective for businesses, as it can save money on recruiting and training employees and minimize the costs associated with SAP infrastructure and implementation.
If you wish to avail yourself of the services of specialized SAP experts in-house 24 hours a day, the costs may turn out to be exorbitant. But through outsourcing, you can gain access to the same specialized expertise, service, and intelligence for a fraction of the cost.
2. Access to specialized skills and expertise
SAP technology and its consumption are rapidly evolving, and businesses may find it challenging to hire people who have knowledge and experience of the latest SAP updates.
By outsourcing the SAP services, you can choose the top talent who is up-to-date on the current SAP developments and has experience working on diverse and complex projects. By availing the services of top SAP professionals who are well-acquainted with the SAP space, you can skip the learning curve and save time and resources that may be needed for training.
3. Scalability and Flexibility
It is vital that your business adapts to the exponential growth of SAP technology. You will need to restructure your organizational resources to accommodate SAP and align with market demand and business objectives.
Outsourcing SAP development allows businesses to be flexible, scale up quickly, downsize resource allocation during dull phases, and meet project deadlines. You can adjust resources anytime and focus attention on them only when it is required within the company.
4. Shift focus on core operations
In medium- to large-scale organizations, management will have its hands full with various tasks such as answering to stakeholders, maintaining market position, and many more, with hardly any time to manage core IT operations.
By leveraging the services of an SAP service provider, the business heads can focus their attention only on the core operations and bigger issues rather than engross themselves in technical details and monotonous tasks. Leaders will have the time to strategically focus on important issues that directly impact organizational goals.
5. Enhanced productivity and efficiency
By outsourcing SAP development to a partner, companies can market their products and services faster. The knowledge and expertise of an external SAP provider can help businesses reach deadlines quicker and more efficiently.
Since you are tapping into the talent of a professional and trained SAP development team, you can get more work done in less time and with fewer errors. Professional SAP partners will have access to industry-specific know-how that can be customized to evolving organizational needs. These benefits can contribute to enhanced productivity in business processes, giving them a competitive edge and a formidable position in the global market.
6. Quicker turnaround times
One of the main benefits of outsourcing to an SAP service provider is the quick turnaround time. Experienced external providers can begin working on your project immediately, eliminating the onboarding and training time spent on specific processes. In a fraction of the time it would take in-house developers, SAP partners’ ability to complete the task quickly and effectively while maintaining quality can yield superior results.
Moreover, internal teams get freed up to focus on important tasks rather than mundane, repetitive jobs.
7. Allow for investment in other business areas
When your business is not channeling a large chunk of its financial resources toward SAP development and training, it can diversify into other business areas. Outsourcing brings out the streamlining of operational workflows, resulting in increased productivity, efficiency, and elevated employee and customer satisfaction. Once all business stakeholders begin to realize the benefits of centralized data management and streamlined operations, they can divert their resources toward expanding their business to cover advanced operational areas.
8. Stay ahead of the competition
Having dominated the ERP space for many years, SAP has become very popular amongst medium and large corporations as a solution to streamline operations, predict business trends, and drive key growth initiatives. With such a powerful product portfolio and constant updates, it is quite a challenge for business leaders to stay up-to-date on technology. By outsourcing SAP services, you can gain access to professionals who are trained SAP partners and who have worked within the SAP realm for decades.
Expert SAP partnerships mean better networking, industry connections, and access to current SAP tools and features. With the aid of top-notch SAP development and support services from a professional SAP partner, you can rest assured of delivering the best to your customers and staying ahead of competitors.
How to choose the right SAP partner for outsourcing?
How will you go about finding an SAP outsourcing partner who will help you devise a solution that aligns with your business needs and budget? Here are a few factors you can consider before making the final choice:
1. A Perfect fit
Ensure that the SAP partner offers services that align with your business needs. Certain SAP providers offer only integration support, while others offer only enhancement support. Hence, it is vital to verify if they possess the required capabilities. The SAP development team must understand your business principles, mission, vision, and values to cater to your unique needs.
2. Expertise and portfolio
Choose an SAP outsourcing partner who has a proven track record of successful implementations, certifications, and accreditations. They must have the winning combination of domain expertise and technical know-how for maximum benefit. They must have a strong portfolio working on real-time projects and hands-on experience on relevant tasks.
The SAP partner must be flexible and willing to accommodate any changes that may occur during implementation. In addition, they must have the required number of developers and expand the team if necessary. It is hence prudent to choose a vendor who has a large talent pool to ensure scalability and flexibility in the project.
4. Extended Support
Your ideal SAP partner will offer extended functional and integration support for all SAP modules and applications. An SAP expert will be able to plan and understand the support needs that will be required going forward. They should be able to respond to and resolve all queries regarding SAP implementation and data migration.
In the era of increased digitization, the demand for SAP development outsourcing is on the rise globally. To stay ahead in the game of innovation and technological advancements, businesses are increasingly turning to outsourcing. In 2023, this trend is expected to continue, with more companies recognizing the advantages of software outsourcing in terms of value-addition, cost reduction, and access to specialized talent. By partnering with a trusted SAP service provider like STL Digital, businesses can mitigate risks, minimize financial investments, and ensure smooth operations for their critical SAP applications. With STL Digital’s expertise and seamless execution, organizations can achieve their SAP goals efficiently, effectively, and with minimum disruption.
1. How does one prepare for SAP outsourcing?
First, define your goals, then plan your budget, document your requirements, choose the right outsourcing partner, and finally assign roles and responsibilities.
2. What are the main stages of software outsourcing?
- Assessment of business needs
- Definition of the scope of work
- Procurement of the contract
- Project initiation and training
- Managing delivery
3. What are the common problems that can occur in SAP outsourcing?
- Uncertainty about the outsourcing vendor
- Language or cultural differences
- Cost factor
- Lack of expertise
- Loss of control
4. What are the main approaches to SAP outsourcing?
The three main types of outsourcing are local outsourcing, offshore outsourcing, and nearshore outsourcing.