Navigating SAP outsourcing

Mastering obstacles and attaining success

SAP serves as the foundational platform for various business functions, encompassing ERP, logistics, financial, and human capital management. SAP implementation holds significant potential for driving the digital revolution in industries like manufacturing, automotive, telecommunications, healthcare, and more. Nevertheless, without proper management, SAP adoption may fall short of delivering the expected outcomes.

Many enterprises face challenges in managing large-scale projects due to either a lack of expertise or time constraints. As a solution, they opt for SAP outsourcing firms, which can efficiently handle such projects within their budget and schedule limitations. Outsourcing can be from the onshore or it can be done in the offshore. Outsourcing can occur either onshore or offshore. Offering remote options meets consultants’ expectations for location independence and work-life balance, while also providing companies access to a broader pool of resources.


Therefore, if you are considering any aspect of SAP-related work within your organization, such as implementation, rollout, application support, or improvement, outsourcing could offer the most advantageous approach. Let’s delve into navigating this process, selecting the optimal vendor for your needs, and overcoming the challenges of SAP adoption with a reliable partner by your side.


Navigating SAP Challenges Through Tech Collaborations

SAP stands as a globally recognized and highly effective solution for enterprise resource planning (ERP), human capital management, customer relationship management (CRM), and various other business functions. However, it also represents a complex ecosystem requiring significant investments in time, resources, and effort. Among the most pressing challenges of SAP outsourcing and adoption include:

  • Time – SAP initiatives frequently demand extensive dedication and effort. It’s essential to set realistic expectations and brace for potentially prolonged periods of development, spanning months or even years.
  • Expense – Introducing a new system is commonly perceived as a means to save costs. Nevertheless, the implementation expenses must be carefully evaluated against the benefits derived from the new system.
  • Transition management – Remember that deploying a new system often necessitates alterations in business operations. This could entail adjustments in processes, roles, and duties.

Well experienced consultants can tackle all these challenges. Specializing in SAP outsourcing services, these experts possess the requisite expertise and skills, which is precisely why enterprises prefer collaborating with a trustworthy vendor rather than embarking on such endeavors independently. However, it’s important to note that these are not the sole challenges associated with SAP adoption.


Aligning Technology with Business Processes and Requirements

A frequent challenge in SAP projects arises from inadequate comprehension of existing business requirements and the technology to support them. To seamlessly integrate SAP within your enterprise’s complex ecosystem, you require a partner capable of delving deeply into current systems, data flows, processes, and user needs. This process, known as Product Discovery, enables SAP outsourcing experts to assess the current system specifications and outline the necessary technical tools for meaningful transformation.


The complexity in designing the system

Once the existing processes and requirements are grasped, the subsequent obstacle involves crafting a system that aligns with the business’s needs. The system must be tailored to fulfill both the current and future requirements of the business.

A careful analysis of the current state of the system should be conducted and planned for the desired one. The design process encompasses technical and business aspects, including workflow, user interface, security, scalability, and data integration. Only after thorough design can we proceed to the development stage.


Integrating with Current Systems

Another challenge in SAP projects involves merging the new system into the existing infrastructure. This often entails intricate data mapping and the integration of various third-party solutions. Moreover, specialized tools like middleware and ETL (Extract, Transform, Load) tools may be necessary to streamline the integration process. While SAP provides its native middleware solutions such as SAP PI or CPI, in certain scenarios, third-party offerings may be more suitable.

Creating interfaces between various systems can be intricate and time-intensive. Therefore, it is essential to collaborate with a trustworthy technology partner who possesses a deep understanding of SAP and other third-party solutions commonly integrated with it.


Key factors to consider prior to outsourcing an SAP project

Deploying SAP solutions provides numerous advantages for enterprises, such as enhanced efficiency, better asset management, improved customer service, heightened security, cost savings, and more. However, it is essential to recognize that SAP implementation is a costly, intricate, and time-consuming endeavor. The project may span years and require substantial investment to complete. A reliable consulting and development partner will highlight the following considerations:


Business requirements

Initially, you must identify if SAP aligns with your business requirements. Industries such as manufacturing, retail, finance, and logistics often benefit from SAP solutions due to their complex supply chains, financial operations, and inventory management needs. For such companies, SAP can prove to be an indispensable solution for addressing significant challenges.

Some businesses may find SAP offerings to be excessive, particularly small and mid-size organizations that do not oversee complex operations. It is crucial to collaborate with a consulting partner who can objectively assess whether SAP is the appropriate choice for your business requirements.


Cost associated with SAP services and implementation

A significant challenge in SAP projects is the expense of implementation. Companies need to factor in the considerable costs linked with training, maintenance, and software support. SAP provides a wide array of pricing models based on factors like user count, user tiers, usage of SAP cloud, and additional services. Depending on your organization’s requirements and user base, annual expenses for SAP alone could reach hundreds of thousands of dollars. When factoring in implementation costs, the overall annual expenses can be substantial.

Select a partner who respects your budget. If your business necessitates SAP and you are willing to invest, you seek collaborators who handle your investment responsibly. Choose an SAP outsourcing vendor who ensures your investment’s value and aids in generating ROI in the long term.


Complicated data transfer

Migrating data from legacy systems to SAP poses its unique challenges. To tackle this task effectively, you’ll need a partner equipped with the expertise to leverage data migration tools such as ETL.



ETL tools serve as the backbone for data transfer between SAP systems and other platforms, enabling seamless integration across multiple systems. They adeptly handle data format conversion and conduct thorough data cleansing checks, ensuring data integrity. Additionally, ETL tools externalize extraction and transformation rules, streamlining maintenance processes.

By considering these factors and following the steps outlined above, you can successfully delegate your SAP project. Ensure thorough research and select a vendor capable of meeting your needs. Also, consider your business requirements and assess the factors influencing your choice of SAP. Through proper planning and assessment, you can achieve timely and budget-friendly project completion.


Navigating SAP Outsourcing: Best Practices

SAP is complex and requires a lot of time and effort to set up. It’s important to have experts to do it right. That’s why it’s crucial to work with a dependable SAP partner to help with the process and provide ongoing support. Here are the important things to consider,

  • Grasp your business requirements: Before outsourcing SAP, it’s crucial to understand your business needs. Identify the essential capabilities required for your company’s success. Reflect on the services required, project scope, and available budget. Investing in SAP software should align with genuine business necessities, not merely following competitors. A trustworthy SAP consulting partner aids in evaluating the necessity of investing resources—money, time, and effort—into specific SAP solutions.
  • Explore vendor options: Following a thorough understanding of your needs, initiate research on potential vendors. Seek out firms boasting SAP experience and specialization in your industry. Assess their portfolio and client feedback to ascertain their capability to deliver requisite services. Given that SAP consulting firms frequently offer development services, collaborating with a single partner for both consulting and development may prove advantageous.
  • Reach out to prospective partners: Upon pinpointing potential vendors offering SAP outsourcing, draft a Request for Proposal and initiate contact. During subsequent discussions, furnish comprehensive details regarding the project scope, timeline, budget, and any other pertinent information. Transparency is key, ensuring all project aspects are openly discussed with the vendor.
  • Choose a vendor: Following extensive discussions with SAP outsourcing vendors, opt for the one aligning best with your requirements. Ensure the selected vendor possesses the requisite experience and expertise to deliver the project punctually and within budget. Subsequently, negotiate the terms and conditions of the agreement. Both parties should establish clarity regarding the project timeline, costs, and any other pertinent details.
  • Execute the project: With the agreement concluded, commence project implementation. Verify that the vendor possesses the necessary resources and personnel to ensure timely project completion.


Considerations in Selecting a Trustworthy SAP Partner

Choosing an SAP outsourcing partner requires careful consideration to ensure that the solution aligns with your business goals within your budget. Here are key factors to evaluate when assessing SAP outsourcing companies:

  • Expertise: Seek an SAP implementation partner with a proven track record of successful projects and industry-specific knowledge. Beyond SAP proficiency, prioritize partners who comprehend the unique requirements of your business domain. The fusion of technical acumen and domain expertise will greatly benefit your SAP outsourcing endeavor.
  • Strategic Vision: Opt for a partner offering comprehensive services beyond SAP outsourcing. It’s advantageous to collaborate with a partner experienced in integrating SAP with various third-party solutions. By keeping an eye on the broader enterprise landscape, you’ll anticipate future needs, such as integrating SAP with Salesforce, Hybris, or OpenText. A partner with extensive expertise ensures seamless integration and future scalability for your enterprise.
  • Assessing Past Projects: Scrutinize the partner’s portfolio to gauge their experience and the range of services offered. Delve into their case studies to gain insight into their hands-on experience and capabilities. Evaluating their previous projects provides valuable insights into their expertise and suitability for your needs.
  • Assessing Reputation: Following a review of the vendor’s portfolio, it’s essential to gauge client satisfaction. Explore various ranking websites to examine average satisfaction ratings and authentic client feedback. This process reinforces confidence in shortlisted SAP outsourcing companies under consideration as potential vendors.
  • Flexibility: Verify that the partner is adaptable and capable of accommodating any changes that may occur during the implementation process.


Final thoughts: reaching the desired results with Intellect

Intellect stands as a leading global provider of SAP solutions, delivering a wide spectrum of services tailored to meet the diverse needs of businesses worldwide. With our offshore development center strategically located in Sri Lanka, we harness the expertise of our experienced resources to offer unparalleled services at competitive rates.

Our offerings span the entire SAP landscape, covering consulting, custom development, application management, and seamless third-party integrations. Moreover, Intellect specializes in ABAP development, SAP Application Managed Services (AMS), global template rollouts, and cloud migration solutions. Businesses entrust Intellect to spearhead their digital transformation journey, ensuring optimal utilization of SAP investments and driving operational excellence.





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