Companies face mounting challenges in attracting critical IT talent, a situation exacerbated by the growing demand for digitalization. For organizations undergoing SAP transformations, this talent shortage is further intensified by the complexity of migrating customized solutions, which often require additional resources or increased reliance on external vendors.
Employers across industries are struggling to attract the critical IT skills necessary for digital transformation. The competition for top talent has been ongoing for years, and with digitalization continuing at an accelerating pace, this challenge is only expected to intensify. Nordic IDC market research confirms these difficulties for companies embarking on digital transformation initiatives.
Furthermore, according to Gartner®, ‘’Sourcing procurement and vendor management (SPVM) leaders have difficult business choices — and numerous sourcing options, each often requiring significant investment with modernization and change possibly taking many years to achieve.’’¹
Over the past decades, companies have developed and implemented highly customized SAP solutions to support their unique business needs. Now, as they embark on SAP transformation and SAP RISE evaluations, migrating these customizations presents a significant challenge. Organizations must either allocate additional resources to migrate these tailored solutions or replace them with more standardized modules and functionalities—both requiring adjustments to user experiences and business processes.
Businesses must recognize the impact of their customizations on resource demands. An IDC study of Nordic companies found that many organizations rely heavily on external suppliers to address talent and competency shortages. Over 50% of respondents reported using at least one vendor for their SAP projects and operations.
Before starting an SAP transformation, companies must assess the significant talent and skill shortages in the market and develop strategies to bridge these gaps. Equally important is recognizing the complexity of migrating highly customized solutions. Organizations must proactively address these challenges by leveraging internal capabilities, hiring new talent, engaging consultants, partnering with third-party providers, and establishing a clear roadmap for success.
¹ Gartner, What Are My ERP Sourcing Options as Support for SAP ECC Ends?, David Penny, Tom Sieber, 4 December 2023
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