Cloud Adoption Accelerates SAP S/4HANA Demand in Asia Pacific
Companies embark on clean-slate deployments as part of digital transformations for efficiency, competitiveness, ISG Provider Lens™ report says
SYDNEY, April 23, 2025--(BUSINESS WIRE)--A growing number of enterprises in Asia Pacific are adopting SAP S/4HANA, especially in greenfield implementations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The ISG Provider Lens™ SAP Ecosystem report for Asia Pacific finds that the region is becoming a growth market for SAP, with many companies implementing S/4HANA as part of larger digital transformations. Research by ISG has found that global enterprise S/4HANA adoption has been relatively cautious and slow. Most of the growth in Asia represents greenfield projects, in which organizations build completely new SAP implementations on S/4HANA. This is especially true in the Association of Southeast Asian Nations (ASEAN) region, ISG says.
"SAP is at the forefront of digital transformation in Asia Pacific," said Michael Gale, partner, ISG. "Major enterprises across the region are embracing S/4HANA as they move to the cloud to increase operational efficiency and maintain competitive advantage."
Cloud use is gaining momentum in Asia Pacific as companies seek more flexible, scalable infrastructure to respond to market changes, the report says. Most prefer private clouds, except in Australia and New Zealand, where public cloud adoption is slightly more prevalent, the report says. This trend has created many opportunities for greenfield SAP implementations, which allow companies to begin with a clean slate as they deploy S/4HANA.
Companies in Asia Pacific are focusing on transforming systems from the ground up to meet modern business requirements and integrate advanced technologies, ISG says. Manufacturing still dominates the SAP landscape in the region, but there are signs of strong growth in other sectors, including healthcare, pharmaceuticals, consumer goods, retail and energy.
Many Asia Pacific enterprises are carrying out deployments through the RISE with SAP and GROW with SAP programs, the report says. These allow organizations to tailor their cloud strategies while benefiting from scalability, cost optimization and innovation. Demand for managed cloud services for SAP ERP is also rising as companies seek to optimize cloud operations while staying focused on business goals.
Many enterprises in the region are embracing SAP Application Management Services (AMS), especially for AIOps systems that can resolve issues without human intervention, ISG says. Midsize enterprises in the region are adopting SAP solutions that include generative AI tools for streamlining processes, automating routine tasks and improving decision-making.
"Though Asia Pacific is diverse, SAP adoption is on the upswing in most markets," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Enterprises are engaging service providers that understand their local cultures and regulatory regimes to build SAP environments for sustainable growth."
The report also examines other SAP trends in Asia Pacific, including specific adoption patterns in India, ASEAN and other parts of the region.
For more insights into the SAP-related challenges of Asia Pacific enterprises, along with ISG's advice for overcoming them, see the ISG Provider Lens™ Focal Points briefing here.
The ISG Provider Lens™ SAP Ecosystem report for Asia Pacific evaluates the capabilities of 39 providers across four quadrants: SAP S/4HANA System Transformation — Large Accounts, SAP S/4HANA System Transformation — Midmarket, SAP Application Managed Services and Managed Cloud Services for SAP ERP.
The report names Accenture, Capgemini, DXC Technology, HCLTech, Infosys, TCS and Wipro as Leaders in three quadrants each. It names IBM and Tech Mahindra as Leaders in two quadrants each. Atos, Birlasoft, Hexaware, Hitachi Digital Services, KaarTech and NTT DATA are named as Leaders in one quadrant each.
In addition, Hitachi Digital Services and Tech Mahindra are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each.
In the area of customer experience, Wipro is named the global ISG CX Star Performer for 2024 among SAP Ecosystem APAC providers. Wipro earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The ISG Provider Lens™ SAP Ecosystem report for Asia Pacific is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250423497539/en/
Contacts
Press:
Will Thoretz, ISG+1 203 517 3119will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG+1 978 518 4520isg@matternow.com
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