With the ever-closing barriers between ERP strategy and BPO – which we discussed at length back in August, it's important to understand enterprises' activities with their ERP maturity in order to get a solid picture of future potential outsourcingactivity. The performances of both SAP and Oracle are now a sure-bell-weather for the IT and outsourcing industries at large.
Bruce Richardson, AMR's Chief Research Officer, offers some keen insight into SAP adoption in his recently launched blog "First Thing Monday", which is an extension of his popular e-newsletter that hits the wires at the beginning of every week.
Bruce points out some key indicators of what we can expect in the coming months:
Many SAP customers he is talking to are continuing to expand their footprint at present and are still planning for further upgrades;
SAP is not planning any labor reductions, despite heavy growth in recent years, and will reduce costs with a hiring freeze and travel restrictions;
SAP is likely to push new programs in the short-term to encourage mid-size business to move into SAP environments.
While we're clearly moving into a difficult economic climate, it's encouraging that many enterprises are continuing to invest in their ERP backbones. I anticipate that as we see more companies seeking cost-containment outsourcing avenues, many will be able to benefit from upgraded (or new) ERP platforms as they evaluate their options. Common ERP standards ultimately support more scalable and lower-cost outsourcing strategies.