Faced with client expectations of lower price points, service providers have two options: either reduce margins or create the same value for clients at a lower cost.
Bob Hershey, vice president and practice leader of the Global SAP Practice, HP Enterprise Services, says, “Most companies (over the years) maximized the benefits of offshoring. However, today the client demands more. They wish to innovate and use automation to not just do the work faster, but eliminate some of the steps in the SAP implementation cycle."
HP supports over 1.7 million users of SAP and the company recently launched HP Rapid Transition Services (HP RTS), a service that automates SAP implementation. HP RTS leverages preconfigured SAP solutions with an HP automation platform that uses virtualized HP industry-standard servers and HP application lifecycle management software. The SAP ERP Human Capital Management (SAP ERP HCM) solution is the first SAP solution to leverage this service. As the concept expands, customers will see a positive shift in the cost of implementing and managing SAP solutions, the company claims.
Bob further says, "Usually system integrators use standardization and their effective global delivery platform to drive better quality of SAP implementation. Automated services like the RTS take this several notches further.”
So where does the service save time and effort? According to Hershey, HP RTS offers the opportunity to reduce cost in the preparation phase, secondly in blue printing, and finally, during conceptualizing and managing the testing cycle (both of which heavily consume labor). “Our focus is on reducing work in methodical steps," adds Hershey.
"Clients have experienced 30% time reduction in project prep phase and an equal percentage drop in time required of testing. The net efficiency derived is between 20-25%,” claims Hershey.
It is evident that leading system integrators will automate the implementation of SAP in days to come. What is equally encouraging is that there is renewed interest of clients in SAP investments and a decrease in the usage of hybrid environment. Clients are willing to try SAP's HCM and supply chain management tools, where traditionally PeopleSoft were the favorites.