HFS Top 10 SAP SuccessFactors Services, 2019 Excerpt for … · 2019-09-17 · Combined number of...
Transcript of HFS Top 10 SAP SuccessFactors Services, 2019 Excerpt for … · 2019-09-17 · Combined number of...
HFS Top 10 SAP SuccessFactors Services, 2019 – Excerpt for Accenture
August 2019
HFS Research authors:
Khalda De Souza, Research Director
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— Khalda De Souza, Research Director
“A successful SAP SuccessFactors project is part of an enterprise-wide HR transformation initiative; it will have a keen focus on end-users to maximize adoption.”
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Topic Page
What you’ll read
Introduction
Research methodology
Service provider profiles
Reference customer profiles
About the author
Executive summary
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5
14
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Introduction
● The HFS Top 10 SAP SuccessFactors Services, 2019 report builds on previous years’ reports, which can be found on www.hfsresearch.com.
● We analyzed the capabilities of 15 service providers offering SAP SuccessFactors services .
● We assessed the service providers’ execution and innovation capabilities to provide consulting, implementation, and ongoing support services for all the SAP SuccessFactors modules. These include: Employee Central, Employee Central Payroll, Recruiting, Onboarding, Performance and Goals, Compensation, Succession and Development, Learning, Workforce Planning, Workforce Analytics and Reporting, and SAP Jam.
● We received feedback from 31 client references provided by the service providers. We also used interviews conducted with participants in global market research studies.
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● Breadth of services and delivery capability: Value chain coverage, service capabilities, and geographic coverage.
● Depth of services: Differentiating services and solutions, including proprietary tools and templates.
● Market and team experience: Size and experience of SAP SuccessFactors services practice.
Ability to execute Innovation capability
● Vision for the development of SAP SuccessFactors services: Investment plans to enhance offerings.
● Vision for delivery capability expansion: Investment plans to strengthen delivery capability.
● Positioning offerings in a business context: Including a deep understanding of the HR process.
Voice of the customer
● Direct feedback from service provider clients: From reference checks, surveys, and case studies critiquing provider performance and capabilities.
33.3% 33.3% 33.3%
The HFS Top 10 SAP SuccessFactors Services, 2019 report assessed and scored service provider participants across execution, innovation, and voice of the customer criteria.
Research methodology
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Plan
• Business case development for SaaS deployment
• Cloud advisory services, including cloud readiness assessment
• Compliance, risk management, and security consulting
• HCM and strategy consulting
• SAP SuccessFactors strategy consulting, process design, and configuration support
• Technical change management consulting
• Organizational change management consulting
• Governance structure
• Medium-term to long-term SAP SuccessFactors roadmap consulting services
Implement
• Project management
• Data migration
• Custom development services to comply with industry, geography, or other business requirements
• Integration services
• Extensions or tools of SAP SuccessFactors to meet specific client needs
• Testing
• Initial user training
• Technical change management execution
• Organizational change management execution
• Proactive consulting and advisory services sharing best practices
Manage
• Governance management
• Upgrade support
• SAP SuccessFactors help desk
• Ongoing integration
• Ongoing testing
• Ongoing training
• Ongoing proactive advice sharing best practice
• Ongoing employee adoption support
• Periodic solution and service delivery reviews
• Identify any required changes in SAP SuccessFactors or process to account for changing business requirements, e.g. M&A, divestment, or new investments in IT
Optimize
• New SAP SuccessFactors module value identification and benefit analysis
• Ongoing SAP SuccessFactorsmodule adds and upgrades, migrations, and consolidation
• Ongoing HCM strategy and system alignment
• HCM analytics and measurement
• Medium-term to long-term SAP SuccessFactors roadmap advisory services
Project Project/RunProject Run
HFS SAP SuccessFactors services value chain
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Executive Summary
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This table reflects the data collected and estimates for the 15 service providers included in this report.
SAP SuccessFactors services market snapshot
Combined SAP SuccessFactors services practice headcount 7,000
Combined SAP SuccessFactors certified consultant headcount 4,120
Combined number of SAP SuccessFactors certifications 7,422
Top three SAP SuccessFactors services certifications currently held1. Employee Central2. Performance and Goals3. Recruiting Management
Top three SAP SuccessFactors services certifications planned in the next 12 months1. Employee Central2. Workforce Analytics and Planning3. Employee Central Payroll
Fastest growing SAP SuccessFactors services module Employee Central
Source: Service provider responses and HFS estimates, July 2019
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This table reflects the data collected and estimates for the 15 service providers included in this report.
SAP SuccessFactors services market snapshot
Combined number of SAP SuccessFactors services clients (past and present) 3,600
Combined number of current SAP SuccessFactors clients 2,000
Combined SAP SuccessFactors services practice headcount 7,000
Average growth in SAP SuccessFactors services in past 12 months 66%
Average expected growth in SAP SuccessFactors services in the next 12 months 52%
Top three SAP SuccessFactors services regions based on participating service provider revenues
1. North America2. Continental Europe1
3. UK
1 Continental Europe: most service providers use this term to describe Western Europe excluding UK and Ireland.Source: Service provider responses and HFS estimates, July 2019
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SAP SuccessFactors provides consulting, implementation, and training services and advice to clients and service partners. It also provides packages and tools to help service partners facilitate deployments. These include
● SAP Model Company: Launched in January 2019, this is a set of pre-configured processes and accelerators to help speed up the implementation of SAP S/4HANA or any individual suite, such as SAP SuccessFactors. A few of the service providers in this research, such as IBM and Wipro, are using SAP Model Company in SAP SuccessFactors deployments today.
● SAP Leonardo: SAP Leonardo is a set of tools and packaged solutions based on SAP Cloud Platform. It includes design thinking and leading-edge technologies such as artificial intelligence (AI), machine learning, blockchain, and analytics. SAP calls it a “digital innovation system." SAP Leonardo includes tools and accelerators, based on use cases, for industry sectors. Service providers have opportunities to leverage SAP Leonardo for SAP SuccessFactors services engagements. Accenture and HCL are examples of SAP SuccessFactors service providers investing in SAP Leonardo services.
SAP SuccessFactors partner support
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Optimizing phase 1 deployments:
● Trend: Some clients who have deployed at least one module of SAP SuccessFactors may not use or even understand the full potential of what they have implemented. We have spoken to many clients who looked for an alternative service provider to help them maximize their investment.
● Advice to service providers: Ensure that clients understand all the functionalities of their implemented module(s) and how they should use them.
● Advice to clients: Stop considering your SAP SuccessFactors deployment as a like-for-like upgrade of your old system. SAP SuccessFactors is a collection of best practices in HR, so be open to embracing new processes and ways of working. Also, insist that your service provider explains the functionalities in depth. Finally, remember that you can engage the same or an alternative service provider to help you to realize the full value of your deployment at a later date.
Organizational change management:
● Trend: Organizational change management continues to be an important issue for clients, as they are often moving from on-premise, Microsoft Excel-based, or even paper-based systems to the SAP SuccessFactors cloud solution. Many service providers focus on optimizing user adoption, such as HCL, IBM, NGA Human Resources, and Wipro.
● Advice to service providers and clients: Do not ignore the importance of organizational change management in SAP SuccessFactors deployment projects. Focus on continued user adoption and feedback programs to maximize the use of SAP SuccessFactors, as, without this, the project has been a failure.
Human resource (HR) or human capital management (HCM) context:
● Trend: The terms HR and HCM are often used interchangeably by the market. For this report, we will use the term HR unless HCM is specifically used in an SAP or service provider offering title. It is becoming increasingly apparent that clients should position their SAP SuccessFactors deployments in the context of their enterprise-wide HR transformation strategies. This may sound obvious, but some clients still view an SAP SuccessFactors project as a technical point implementation of specific functionalities.
● Advice to service providers: Consider forming client teams with both general HR and SAP SuccessFactors experts. In fact, most of the service providers in this research encourage their HR experts to work with their SAP SuccessFactors services consultants. In some cases, this may even be the same business unit. This provides important HR process knowledge to clients.
● Advice to clients: To support a holistic HR transformation, you should have access to the latest research about the future of workplace trends and benchmark against enterprises that are considered to be cutting-edge in their HR processes. A service provider with general HR experience is best placed to share best practice processes and thinking with you.
Release management woes:
● Trend: SAP SuccessFactors has quarterly releases of new module functionalities. Clients must actively adopt these. They may have thought that they could do this in-house, but keeping abreast of developments in and implications of the quarterly new releases of the modules is proving difficult for most.
● Advice to service providers: Provide consultative assistance at new release stages. This is not just about what the client should do technically to adopt the new features. It should also include the business value and implications of adopting or not adopting any new features.
● Advice to clients: Do not underestimate the importance, skill, and time that release management may take. If you insist on managing this in-house, ensure that your deployment partner trains your internal administrators on the process. Using a service provider for release management is a sensible option as they should understand all technical and business aspects of all new releases, which is important. You do not have to use your deployment partner for this, as any SAP SuccessFactors partner should be able to deliver this.
Market trends
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HFS Top 10 SAP SuccessFactors services, 2019
Hexaware
Cognizant
Wipro
Capgemini
NTT DATA
NGA HR
HCL
Infosys
DXC
Rizing HCM
EY
TCS
Deloitte
IBM
Accenture
Execution Innovation Voice of Customer
Experience and scale with impressive tool investment
Largest specialist SAP SuccessFactors partner
Strong growth and holistic approach to HR transformation
User-centric and flexible management services
HR-led with proactive advice through deployment
HR expert, with global payroll strength
Global footprint with tailored solutions
Strengthened position with client-centric delivery focus
HR expertise with flexible support offerings
Cloud journey support with factory model delivery
Consulting investment, BPO, and industry strength
Employee-centric, combined with cognitive approach
Large certified pool with HR transformation expertise
Breadth of services and thought leadership investment
Employee-centric HR consulting expert with strong focus on tools development
Source: HFS Research, 2019
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HFS ranking
Ability to execute Innovation capability
Voice of the customer
Breadth of services and delivery
capability Depth of servicesMarket team and
experience
Vision for the development of
offerings
Vision for the expanding delivery
capability
Ability to position SuccessFactors in a
business context
#1
#2
#3
#4
#5
HFS top five service providers by individual assessment dimensions
Source: HFS Research, 2019
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Service Provider Profiles
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Key clients Global operations and resources Proprietary technologies
Target clients: Large and mid-size enterprises particularly requiring complex HR transformations
Geographic coverage, in order of revenue: North America, the UK, Continental Europe, Middle East and Africa, India, Australia and New Zealand and other Asia-Pacific, Latin America
Industry coverage: All industries
Publicly disclosed clients include:Tapestry, Newport News, Cargill, Donnelley Financial Services, Canada Mortgage Housing Corporation, Hexion, Assala Energy, SAP, Equate, Expo 2020 Dubai
● Partner level: Platinum● Year of practice established: 2009● Number of SuccessFactors certified consultants: 700+● Number of SuccessFactors certifications: 1,500+● Total number in practice: 2,000+● Number of clients: 200+● Number of engagements completed or ongoing: 700+
Key delivery locations for SuccessFactors practice:● Europe: UK, Denmark, Sweden, Switzerland, Germany,
Portugal, Spain, Italy, France, Belgium, Poland, Israel ● LATM: South America● North America: United States, Canada, Mexico● APAC: Australia, NZ, Japan, China, S. Korea, Singapore,
Philippines, Malaysia, Thailand, South Africa, Middle East, India
● Accenture Intelligent Enterprise Solution for Talent & HR: Pre-configured solutions for fast implementation available through Accenture myConcerto (digitally integrated, end-to-end enterprise transformation platform)
● Packaged Cloud Methodology for SuccessFactors: Accenture Delivery Suite (ADS) delivery methodology for SuccessFactors
● Accenture SuccessFactors’ Data Conversion Toolkit● Accenture SuccessFactors’ Test Automation Toolkit● Accenture Human Capital Operating Model● Accenture's HR 360 Diagnostic: Tool to capture business objectives and challenges● Accenture HR Audit and Compliance As-a-Service: SuccessFactors’ extension on SAP
Cloud Platform. ● Accenture Clone and Test for Cloud: SAP Cloud Platform extension for Employee
Central; Accenture Quick Document Builder for SuccessFactors: Automates correspondence sent to employees and managers
● Accenture Document Composer: SuccessFactors extension on SAP Cloud Platform● Accenture’s HCM solutions available as a single subscription-based SaaS agreement
that includes SAP Cloud Platform
Strengths Opportunities
● Market experience: Accenture has the largest SuccessFactors services practice and one of the highest numbers of certified consultants. Additionally, it is the oldest SAP SuccessFactors partner and has the most experience. Accenture leverages this experience across the company to provide consulting, implementation, and post go-live support services to large, global deals that focus on business transformations rather than limited to HR engagements. One client said that Accenture had “successfully delivered a complex project.”
● Impressive investment in proprietary solutions: Accenture has proprietary solutions across the SAP SuccessFactors services life cycle. The Accenture Intelligent Enterprise Solution for Talent and HR includes continually updated functional and industry best practices. This feeds into Accenture’s myConcerto digital platform, which visualises client roadmaps and delivery and a prototype of the solution. Clients have access to thought leadership and actionable plans and data relevant to their deployments, with standardized methodologies. Accenture also continues to invest in its Liquid Studios for SAP Solutions where it uses SAP Intelligent Technologies to develop solutions with clients. A few clients highlighted Accenture’s capability to co-invent solutions with them.
● Partnership focus: Clients commend Accenture on its strong partnership focus and commitment to the client’s success. Clients scored Accenture highly across all criteria, and especially for its geographic footprint and scale, its ability to explain the medium-to-long term implications of a SaaS deployment, and the quality of its account management team.
● Sales sometimes construed as pushy rather than helpful: A few clients said that Accenture can sometimes seem to be too focused on identifying new sales opportunities. Clients should focus on the specifics of their engagement at hand, but they should also realize that, due to its vast experience in this market, Accenture can provide important advice for a successful deployment and post go-live experience.
Dimension Rank
HFS Top 10 position #1
Ability to execute
Breadth of services and delivery capability
#2
Depth of services #1
Market and team experience
#1
Innovation capability
Vision for the development of offerings
#1
Vision for delivery capability expansion
#1
Positioning offerings in a business context
#1
Voice of the customer #5
Experience and scale with impressive tool investment
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Reference Customer Profiles
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Exhibit 2: Client reference revenue
Client reference demographics
Exhibit 1: Client references by industry sector
0 1 2 3 4
Chemical
Environmental Services
Forestry
Healthcare and Life Sciences
Services
Telecommuncations
Agriculture
Energy and Utilities
Technology
Retail
Financial Services
Manufacturing
Pharmaceutical
Travel, Tourism and Hospitality
CPG
0 2 4 6 8
$50-$100 billion
>$100 billion
>$11-$20 billion
< $1 billion
$6-$10 billion
$21-$50 billion
$1-$5 billion
Source: HFS Research 2019
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Voice of the customer survey
Source: HFS Research 2018
Geography
Company Size
Industry
Job Title
50
50
50
50
100
0 10 20 30 40 50 60 70 80 90 100 110
UK
ROE
Latin America
APAC
North America
Number of respondents
31
32
32
32
32
34
34
34
39
0 5 10 15 20 25 30 35 40
E&U
Transport
Other
Life/health
Insurance
Telecom
CPG and retail
BFS
Manufacturing
Number of respondents
40
121
139
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150
50,000+
1,000-4,999
5,000-49,000
Number of respondents
3
13
18
34
38
49
55
90
0 10 20 30 40 50 60 70 80 90
CEO
CFO
CRO
ITS (VP/Director)
COO
CISO
CIO
IT (VP/Director)
Number of respondents
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HFS Research authors
Khalda De Souza is Research Director, SaaS services and Cyber Security services at HFS Research. She tracks how service providers are developing their SaaS services and Cyber Security services strategies as well as enterprise clients’ requirements and needs in these markets.
Khalda joined HFS Research in October 2014. Prior to HFS, Khalda was a senior level IT services research analyst at Gartner for nearly 20 years. In that time, she managed the European research for several areas including network and IT security and business applications. Khaldahas led key research deliverables such as Magic Quadrants for both Europe and global markets at Gartner.
Khalda has extensive experience in providing strategic advice to both IT services providers and customer organizations globally. For providers this includes, but is not limited to, channel strategies, product positioning, competitive intelligence, market trends and forecast analysis. For customers, Khalda has provided insightful guidance on sourcing and vendor selection strategies. (View bio and contact details.)
Research Director, SaaS Services and Cyber Security Services
Khalda De Souza
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Defining future business operations
HFSResearch.com | @HFSResearch