HfS Blueprint Report. SAP SuccessFactors Services Excerpt for Accenture. October 2017

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1 The Services Research Compay HfS Blueprit Report SAP SuccessFactors Services 2017 Excerpt for Acceture October 2017 Khalda De Souza Research Director, SaaS Services

2 Table of Cotets TOPIC PAGE Executive Summary 2 Research Methodology 17 Service Provider Grid 22 Service Provider Profile 26 Market Wrap-Up ad Recommedatios 29 About the Author HfS Research Ltd. Excerpt for Acceture Proprietary Page 1

3 Executive Summary

4 Itroductio to the HfS Blueprit Report: SAP SuccessFactors Services 2017 The 2017 HfS SAP SuccessFactors Services Blueprit Report cotiues our theme of lookig at the services sets for the plaig, implemetatio, ad maagemet of leadigsoftware-as-a-service platforms. Ulike other quadrats ad matrices, the HfS Blueprit idetifies relevat differetials betwee service providers across a umber of facets i two mai categories: iovatio ad executio. This Blueprit report looks at the iovatio ad executio capabilities of 13 SAP SuccessFactors service providers i detail HfS Research Ltd. Excerpt for Acceture Proprietary Page 3

5 SAP SuccessFactors Techologies This Blueprit tracks cosultig, implemetatio, ad ogoig support services associated with the SAP SuccessFactors applicatios, icludig: Core HR: Employee Cetral ad Employee Cetral Payroll SAP SuccessFactors Talet Solutios: Recruitig Marketig, Recruitig Maagemet, Oboardig, Learig, Performace ad Goals, Compesatio, Successio ad Developmet SAP SuccessFactors Aalytics Solutios: Workforce Aalytics, Workforce Plaig SocialCollaboratio: SAP Jam There are ew releases or ehacemets every quarter. SAP Leoardo: SAP Leoardo is a set of tools ad packaged solutios based o SAP Cloud Platform. It icludes Desig Thikig, ad leadig-edge techologies such as Artificial Itelligece (AI), Machie Learig, Blockchai, ad Aalytics. SAP calls it a digital iovatio system." SAP Leoardo icludes tools ad accelerators for idustry sectors based o use cases. Service providers have opportuities to leverage SAP Leoardo for SAP SuccessFactors services egagemets, although this is still at a early stage i the market. Acceture ad HCL are examples of SAP SuccessFactors service providers ivestig i SAP Leoardo services HfS Research Ltd. Excerpt for Acceture Proprietary Page 4

6 SAP SuccessFactors Services SAP SuccessFactors provides the followig services: Advisory services Implemetatio services Itegratio services SAP Educatio for SAP SuccessFactors HCM Suite: This icludes traiig ad cosultig services, icludig best practice advice. Traiig is available for customers ad service parters. Customer Commuity, to ask questios ad commuicate with peers Customer Support Portal Ogoig traiigad webiars Evets ad cofereces are held aroud the world. Its flagship SuccessCoect evets for customers are also atteded by the leadig service parters. SAP Leoardo Iovatio Services: Customers have access to SAP experts, icludig desigers, idustry sector experts, ad techology cosultats. SAP SuccessFactors is ot icluded i this research. This Blueprit report profiles 13 of SAP SuccessFactor s service parters, which have idetified opportuities to expad the basic services offered directly by SAP HfS Research Ltd. Excerpt for Acceture Proprietary Page 5

7 SAP ParterEdge: Service Program SAP ParterEdge Program: SAP SuccessFactors parters are part of the SAP ParterEdge program. All parters have access to iformatio, advice, traiig, ad tools. There are two broad levels of parters: SAP ParterEdge Ope Ecosystem for Service: This is for smaller cosultig ad system itegratio providers ad practices iitializig their relatioship with SAP ad SAP SuccessFactors. Parters have access to some free iformatio, traiig, ad tools. SAP ParterEdge for Service: This is for established SAP SuccessFactors service providers ad practices. Parters must pay a aual fee ad commit to cotiuous improvemet to remai part of the ParterEdge program. There are three levels of partership withi the SAP ParterEdge Service program: Silver, Gold, ad Platium. Parters ca move up to the ext level by accruig Value Poits, but Platium parters are selected by SAP SuccessFactors ivitatio oly. Ru SAP Solutios: This icludes SAP Outsourcig ad Operatios parters. SAP provides certificatio of local or global support capabilities. Examples iclude IBM ad TCS HfS Research Ltd. Excerpt for Acceture Proprietary Page 6

8 SAP SuccessFactors Resources for Service Parters SAP SuccessFactors Workbooks: These outlie how to cofigure the differet modules. Service provider parters ca use ad ehace these for cliets. Itelliget Services: This automates process steps i SAP SuccessFactors ad icludes itelliget services that provide a customized ed-user experiece. Parter Portal: Service provider parters have access to a parter portal that supplies iformatio, advice, traiig, ad tools. SAP Product Road Maps: These explai the plaed developmet of a feature or fuctio of each product for cliets, icludig recet chages available, upcomig developmet releases i 12 to 18 moths, ad proposed themes for products beyod this time. Certificatios: Service provider parters ca achieve certificatios i each of the SAP SuccessFactorsHCMsuite modules HfS Research Ltd. Excerpt for Acceture Proprietary Page 7

9 SAP SuccessFactors Selectio We spoke with 23 cliet refereces for this research. This chart shows the top reasos why they selected SAP SuccessFactors. Already havig SAP i the back-office leadig to a eterprise-wide SAP strategy is the most commo reaso SAP SuccessFactors is selected. Reaso for Selectig SAP SuccessFactors Corporate SAP strategy Global scale Selectio Criteria Product fuctioality Best fit for our requiremets Do't kow Reputatio Number of Metios Source: HfS Research, September 2017 N= HfS Research Ltd. Excerpt for Acceture Proprietary Page 8

10 SAP SuccessFactors Modules: Curret Deploymet ad Fastest Growth The top SAP SuccessFactors modules curretly deployed are: Employee Cetral Performace ad Goals Recruitig Maagemet Learig The three fastest growig SAP SuccessFactors modules are: Employee Cetral Recruitig Maagemet Oboardig Average statistics based o all aswers of service providers i this Blueprit report 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 9

11 SAP SuccessFactors Services Value Chai Pla Implemet Maage Optimize Busiess case developmet for SaaS deploymet Cloud advisory services, icludig cloud readiess assessmet Compliace, risk maagemet, ad security cosultig HCM ad strategy cosultig SAP SuccessFactors strategy cosultig, process desig, ad cofiguratio support Techical chage maagemet cosultig Orgaizatioal chage maagemet cosultig Goverace structure Medium to log-term SAP SuccessFactors roadmap cosultig services Project maagemet Data migratio Custom developmet services to comply with idustry, geography, or other busiess requiremets Itegratio services Extesios or tools of SAP SuccessFactors to meet specific cliet eeds Testig Iitial user traiig Techical chage maagemet executio Orgaizatioal chage maagemet executio Proactive cosultig ad advisory services sharig best practice Goverace maagemet Upgrade support SAP SuccessFactors help desk Ogoig itegratio Ogoig testig Ogoig traiig Ogoig proactive advice sharig best practice SAP SuccessFactors uptime, data accuracy, ad access resposibility Ogoig employee adoptio support Periodic solutio ad service delivery reviews Idetify ay required chages i SAP SuccessFactors or process to accout for chagig busiess requiremets, e.g. M&A, divestmet, ew ivestmets i IT New SAP SuccessFactors module value idetificatio ad beefit aalysis Ogoig SAP SuccessFactors module adds ad upgrades, migratios, ad cosolidatio Ogoig HCM strategy ad system aligmet HCM aalytics ad measuremet User commuity facilitatio Medium to log-term SAP SuccessFactors roadmap advisory services Project Project Ru Project/Ru 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 10

12 SAP SuccessFactors Services Value Chai Market Approximate Split of SAP SuccessFactors Services Busiess by Value Chai Service* 12% 3% 14% Pla More tha 50% of the curret SAP SuccessFactors service market is domiated by implemetatio projects. 15% 57% Implemet Maage Optimize Other** Most service providers expect cosultig ad postdeploymet support services to icrease at the expese implemetatio services i the ext few years. Source: HfS Research, September 2017 Aggregate resposes of service providers i this Blueprit ** Other icludes busiess process services ad SAP SuccessFactors applicatio resell 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 11

13 Key Blueprit Highlights* The 13 service providers i this Blueprit report have a total of: 2,726 certified cosultats. 2,774 SAP SuccessFactors services cliets. It should be oted that Aaso has served 2,000 cliets aloe. 5,327 people i the SAP SuccessFactors service practice. However, as some providers are uable to provide distict practice umbers, they have icluded some SAP or HCM practice umbers. Service providers report a average of 60% growth of SAP SuccessFactors services busiess i the last fiscal year. They expect a average growth of 68% of SAP SuccessFactors services busiess i the ext fiscal year. The average referece score i the Blueprit was 7.8 out of 10. Most referece cliets scored service providers higher for their executio capabilities tha their perceived iovatio capabilities. Service providers estimate that Desig Thikig is preset i 59% of curret SAP SuccessFactors service egagemets. They expect Desig Thikig presece i egagemets to grow by 62% i the ext 12 to 18 moths. Total or average statistics based o all aswers of service providers i this Blueprit report 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 12

14 Key Blueprit Highlights* (cotiued) Geographic scope of cotracts: O average, over a third, 39%, of egagemets cover more tha 10 coutries. This is followed by 24% of cotracts focused o oly oe coutry. Service providers expect multi-coutry egagemets to grow i the ext year. A few service providers, icludig HCL, Ifosys, ad Wipro are also focusig efforts to serve mid-market eterprises, which willlikely be cocetrated i oe or a few coutries. North America domiates: Approximately 40% of SAP SuccessFactors service busiess to date comes from North America. This is followed by approximately 20% from Cotietal Europe ad 16% from the UK. Service providers i this research expect these to cotiue to be the top three regios for SuccessFactors service busiess i SAP SuccessFactors Service busiess by idustry sector: O average, the top three idustry sectors for SAP SuccessFactors service busiess are: 1. Fiacial services: bakig ad capital markets 2. Retail ad distributio 3. Cosumer goods Service providers are seeig growth across all idustry sectors for Average statistics based o all aswers of service providers i this Blueprit report 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 13

15 Service Provider Ivestmets SAP SuccessFactors service providers are ivestig i the followig areas i the ext few years: Certifyig ad traiig cosultats: SAP SuccessFactors service parters cotiue to trai ad certify cosultats i the differet SAP SuccessFactors modules. Cliets complai that service provider teams are sometimes composed of a mix of skills, for example with strog Learig module experts but much weaker Recruitig module cosultats. Keepig abreast of SuccessFactors module ivestmets ad traiig cosultats i all the latest applicatio versios are ogoig challeges for service providers i this market. Keepig abreast of SAP ivestmets: As well as specific SAP SuccessFactors HCM modules, service providers are developig services to support ew SAP techologies that support ad ehace the SAP SuccessFactors experiece for cliets. Examples iclude the SAP Cloud ad SAP Leoardo. Desig Thikig: Service providers are icreasigly focused o meetig the eeds of ad supportig the ed-user. For example, Acceture has updated its HR Trasformatio Next Geeratio Methods to icorporate employee experiece, ad HCL develops persoas as part of its user cetric desig approach. Artificial Itelligece (AI): AI is a growth area. Examples of ivestmets iclude EY stregtheig its chatbot based support services offerig, HCL developig a itelliget HR assistat Lucy ad Ifosys ivestmet i NIA,its Next GeeratioItegrated Artificial Itelligece Platform HfS Research Ltd. Excerpt for Acceture Proprietary Page 14

16 Service Provider Ivestmets (cotiued) Cosultig services ivestmet: Service providers are developig or stregtheig their cosultig services, i particular cloud readiess services, roadmap services, ad health checks that ca be delivered at ay time before, durig, or post deploymets. Post-deploymet support ivestmet: Service providers are developig or stregtheig their post go-live support offerigs i lie with market demad. Cliets eed flexible optios that iclude ad hoc access to experts, especially to uderstad the implicatios of ew releases ad fuctios. Service providers ehacig their support services offerigs iclude Acceture, Deloitte, HCL, ad NTTDATA. Proprietary tool ivestmet: Proprietary tools are key differetiators for service providers i the SAP SuccessFactors service market. Cliets have eve selected a service provider based o the presetatio of a particular tool or methodology i the RFP stage. The service provider profiles i this report list some of the tools, templates, ad methodologies each service provider has developed. The followig slide illustrates a few of these HfS Research Ltd. Excerpt for Acceture Proprietary Page 15

17 Service Provider Proprietary Tools This table shows a few of the iterestig tools developed by service providers. Please refer to the idividual profiles for more detail ad other examples, such as data migratio tools, testig tools, ad add-o fuctioality tools. Type of Tool Pre-cofigured tools to simplify ad speed up SAP SuccessFactors implemetatios, ofte based o best practice scearios Examples Acceture: Acceture High-Velocity Talet ad HR Aaso: Proprietary Rapid Deploymet Solutio (RDS) Deloitte: HR FastForward EY: HR360, Rapid Deploymet Solutio HCL: RapidHR NGA Huma Resources (HR): Fast Track NTT DATA: 80/10/10 Project Methodology ad Approach Deploymet methodologies to ease cloud migratios ad also brig value Idustry sector templates Payroll accelerators ad solutios AI-based tools ad techologies Acceture: Packaged cloud methodology for SuccessFactors HCL: Beefits realizatio methodology Ifosys: Value realizatio methodology Wipro: Safe passage to cloud framework Ifosys: Automotive, retail, ad fiace templates ad frameworks NTT DATA: Maufacturig, retail, healthcare, ad pharmaceutical workbooks ad templates EY: Payroll Cotrol Ceter NGA HR: SAP SuccessFactors Maaged Payroll solutio HCL: DRYiCE-AI Automatio services Ifosys: NIA, its Next Geeratio Itegrated Artificial Itelligece Platform Busiess-orieted tools Acceture: HR 360 Diagostic tool 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 16

18 Research Methodology

19 Research Methodology Data Summary The data for this Blueprit was collected i Q2 ad Q3 2017, coverig service buyers, service providers, ad advisors ad ifluecers of SAP SuccessFactors services. SAP SuccessFactors has a vast ecosystem of service parters. HfS selected a small group of some of the leadig SAP SuccessFactors service providers to profile i this Blueprit report. Te service providers fully participated i this research, Capgemii, Cogizat, ad IBM did ot fully participate i this research. Participatig Service Providers This Report Is Based O: Tales from the Treches: Iterviews were coducted with buyers who have evaluated service providers ad experieced their services. Some were supplied by service providers, but may iterviews were coducted by HfS Executive Coucil members ad participats i our extesive market research. Sell-Side Executive Briefigs: Structured discussios with service providers were iteded to collect data ecessary to evaluate their iovatio, executio ad market share, ad deal couts. Publicly Available Iformatio: Fiacial data, website iformatio, presetatios give by seior executives, ad other marketig collateral were evaluated HfS Research Ltd. Excerpt for Acceture Proprietary Page 18

20 HfS Blueprit Scorig Percetage Breakdow Executio 100% Quality of accout maagemet team 10% Quality of project maagemet team 15% Flexibility ad icorporatig cliet feedback 10% Scale ad experiece of cosultig, implemetatio, ad ogoig maagemet services capabilities 25% Geographic footprit ad scale of the service provider 15% Availability ad stregth of resources 15% Experiece deliverig idustry-specific services ad solutios 10% Iovatio 100% Visio for ad ivestmets i the evolutio of SAP SuccessFactors services 35% Assistace to help cliets move to the cloud 10% Usig Desig Thikig to deliver busiess outcome solutios 10% Itegratio of trasformatio ad process cosultig capabilities 10% Ability to adopt holistic, log-term view of cliets SAP SuccessFactors joureys 10% Ivestmet i proprietary tools, accelerators, ad solutios 25% 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 19

21 Executio Defiitios Executio Quality of accout maagemet team Quality of project maagemet team Flexibility ad icorporatig cliet feedback Scale of cosultig, implemetatio, ad ogoig maagemet services capabilities Geographic footprit ad scale of the service provider Availability ad stregth of resources Experiece deliverig idustry-specific services ad solutios How well does the service provider execute o its cotractual agreemet? How well does the service provider maage the cliet/provider relatioship? What is the quality level of professioal skills i the accout maagemet team? How effective is this team i promotig collaboratio ad creatig a true partership relatioship with the cliet? What is the quality level of professioal skills i the accout maagemet team? Does the service provider uderstad the cliet's defiitio of project or ogoig egagemet success, ad is it able to deliver this? How successfully has the service provider take feedback ad icorporated that feedback ito their services? Has the service provider bee flexible, resposive, ad timely? What is the service provider's capabilities ad experiece across the Value Chai (see slide 10), icludig the availability of relevat certificatios ad competecies? What is the service provider's capability ad experiece to deliver multi-site ad multi-coutry egagemets, ad its capability to offer local resources whe eeded? How well is the service provider able to source expertise from all available sources, both iterally ad exterally, to address capability gaps? Is the service provider able to provide the right quality of resource i a timely maer? How strog is the service provider's skills ad talet base? How well does the provider uderstad ad have experiece to delivery idustry sector-tailored services ad solutios? This icludes idustryspecific tools ad advisory services HfS Research Ltd. Excerpt for Acceture Proprietary Page 20

22 Iovatio Defiitios Iovatio Visio for ad ivestmets i the evolutio of SAP SuccessFactors services Assistace to help cliets move to the cloud Usig Desig Thikig to deliver busiess outcome solutios Itegratio of trasformatio ad process cosultig capabilities How does the service provider iovate its offerigs i respose to market demad, cliet requiremets, ad its ow visio for how SAP SuccessFactors services will evolve? What is the service provider's visio for the evolutio of SAP SuccessFactors services? What strategies does the service provider have to develop ew services to meet emergig cliet demads? Does the service provider offer iovatio i commercial models to help cliets Write Off Legacy solutios? Does the service provider offer assistace with orgaizatioal chage maagemet ad cultural ed-user traiig to facilitate the move to cloud applicatios? Does the service provider uderstad the busiess cotext to reimagie processes aliged with meetig cliet eeds? Does the service provider have experiece i deliverig busiess outcome focused solutios for cliets? How is the service provider itegratig chage ad trasformatioal cosultig throughout the value chai of SAP SuccessFactors services? Ability to adopt holistic, log-term view of cliets SAP SuccessFactors joureys Ivestmet i proprietary tools, accelerators, ad solutios Does the service provider have capability ad experiece to proactively suggest recommedatios ad iovatio to cliets, with correspodig roadmaps? Does the service provider offer assistace to trai cliets to support their ow mediumto log-term SAP SuccessFactors joureys post deploymet? What is the provider doig to ivest i proprietary capabilities, tools, accelerators, ad other solutios to ehace the value of SAP SuccessFactors for cliets? What is the service provider's strategy to ivest i these areas i the future? 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 21

23 Service Provider Grid

24 Guide to the Blueprit Grid To distiguish service providers that show competitive differetiatio i a particular lie of delivery with progress i realizig the As-a-Service Ecoomy of busiess outcome-orieted, o-demad, talet + techology services, HfS awards these providers the As-a-Service Wier's Circle desigatio. As-a-Service Wier's Circle shows excellece recogized by cliets i the Eight Ideals i both executio ad iovatio High Performers demostrate strog capabilities yet lack a iovative visio or mometum i executio agaist the visio High Potetials demostrate visio ad strategy but have yet to gai mometum i the executio of it Executio Powerhouses demostrate solid, reliable executio, but have yet to show sigificat iovatio or visio Executio Collaborative relatioships with cliets, services executed with a combiatio of talet ad techology as appropriate, ad flexible arragemets. Execute some of the followig areas with excellece: worthwhile relatioships with cliets, services executed with gree lights, ad flexibility whe meetig cliets eeds. Early results ad proof poits from examples i ew service areas or iovative service models, yet lack scale, broad impact, ad mometum i the capability uder review. Evidece of operatioal excellece; however, still more of a directive egagemet betwee a service provider ad its cliets. Iovatio Articulates visio ad a ew way of thikig, has recogizable ivestmets i future capabilities ad strog cliet feedback, ad is drivig ew isights ad models. Typically, describe a visio ad plas to ivest i future capabilities ad parterships for As-a-Service ad illustrate a ability to leverage digital techologies or develop ew isights with cliets. Well-plotted strategy ad thought leadership, showcased use of ewer techologies or roadmap, ad talet developmet plas. Less evidet visio ad ivestmet i future-orieted capability, such as skills developmet, itelliget operatios, or digital techologies HfS Research Ltd. Excerpt for Acceture Proprietary Page 23

25 HfS Blueprit Grid: SAP SuccessFactors Services 2017 Excerpt for Acceture 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 24

26 Major Service Provider Dyamics: Highlights Executio Accout maagemet: Accout maagemet remais a crucial success factor for all applicatio service egagemets. Cliets iterviewed for this Blueprit are especially ethusiastic about Aaso, Deloitte, ad EY. Project maagemet: The ability to effectively mage projects ad have a leader who uderstads the cliet s busiess eeds is a differetiator. Service providers who were particularly commeded for this are: Acceture, Ifosys, ad Wipro. Flexibility ad icorporate cliet feedback: Cliets appreciate a flexible approach to service egagemets that does ot iclude a costat recourse to the statemet of work documet for ay chages requested. Cliets scored all of the service providers well for their ability to deliver flexible services. Those that particularly stood out are: Aaso, Acceture, Deloitte, EY, IBM, ad Wipro. Availability ad stregth of resources: The ultimate success of a project relies o havig timely access to strog resources. Service providers that particularly impressed cliets o this are EY, HCL, Ifosys, ad Wipro. Experiece deliverig idustry-specific services ad solutios: While most cliets curretly view SAP SuccessFactors service egagemets as horizotal, a few service providers have developed idustry-focused services ad solutios. These iclude HCL, Ifosys, NTT DATA, ad Wipro Iovatio Visio for SAP SuccessFactors effectiveess: Havig a visio for where the processes supported by SAP SuccessFactors are headed i the future is a importat elemet of Iovatio. We saw this visio come particularly from Acceture, Deloitte, IBM, ad NGA Huma Resources (HR). Assistace to help cliets move to the cloud: Cliets eed specific services, traiig, ad support to uderstad the implicatios of movig to the cloud. Service providers that stood out for this ivestmet iclude: Aaso, Acceture, Deloitte, NGA HR, ad HCL. Ivestmet i proprietary tools ad solutios: Implemetig ad maagig SAP SuccessFactors deploymets for cliets is ehaced by havig a suite of uique tools, accelerators, ad other solutios to maximize the attaimet of beefits for cliets ad service providers. All of the service providers i this Blueprit are ivestig i SAP SuccessFactors tools, templates, ad accelerators. See slide 16 for examples. Service providers that particularly impressed with tools ivestmet iclude Acceture, HCL, IBM, Ifosys, NTT DATA, NGA HR, ad Wipro HfS Research Ltd. Excerpt for Acceture Proprietary Page 25

27 Service Provider Profile

28 Service Provider Profiles The followig sectio presets service provider profiles. Key poits that apply to all profiles iclude: The Blueprit leadig highlights: This sectio lists the Executio ad Iovatio criteria that the service provider particularly excelled at. This is based o service provider iformatio ad cliet referece scores ad commetary. Acquisitios ad parterships: All service providers parter with SAP SuccessFactors ad this is therefore ot listed o each idividual profile. Operatios: The statistics i this sectio are HfS ad service provider estimates. The total practice teams for example may iclude other SAP, HCM, or Cloud services experts who work across specific applicatio practices. Techology ad platforms: This sectio lists examples of the service provider s tools ad templates for SAP SuccessFactors services. This is ot ecessarily a comprehesive list, ad serves to preset some of the mai example ivestmets made by the service provider HfS Research Ltd. Excerpt for Acceture Proprietary Page 27

29 Acceture Wier s Circle Blueprit Leadig Highlights Quality of project maagemet Flexibility ad icorporate customer feedback Scale of service offerigs Geographic scale Assistace to move to the cloud Trasformatio ad process cosultig Visio Ivestmet i proprietary tools Vast experiece, strog capability, ad scale with a impressive ivestmet i tools Stregths Capability ad experiece: Acceture has the largest SuccessFactors services practice, with the secod highest umber of certified cosultats i this research. It has extesive experiece, particularly i HR trasformatio projects ad global, complex deals. Acceture was also awarded the 2017 SAPPHIRE Piacle Award for SuccessFactors Parter of the Year Large Eterprise Compaies. Strog SuccessFactors services capabilities: Acceture offers the complete value chai of SuccessFactors services, focused o busiess outcomes for cliets. Acceture offers flexible support optios ad workshops that provide assistace to cliets who wat to support the solutio themselves. This highlights Acceture s focus o esurig cliet success. Oe referece said, They kow my success is their success. Acceture also rus Busiess Process Services o SuccessFactors for global cliets ad provides AI / automatio related to the platform. Geographic scale: Acceture has the most comprehesive rage of SuccessFactors service delivery ceters of the providers profiled, with ceters i every regio i the world. Cliets highlighted geographical scale as a stregth for Acceture. Tools developmet: Acceture has made impressive ivestmets i tools that help cliets to uderstad ad achieve rapid cloud deploymets. Acceture High Velocity Talet ad HR, which icludes pre-cofigured solutios for fast implemetatio, is a stregth. These tools are cotiually updated, ad also has a public sector idustry versio. Acceture s vast experiece i this space has eabled it to develop may tools to help cliets to deploy ad use SuccessFactors. Desig Thikig focus: Acceture majors i trasformatio projects, with a Desig Thikig focus. This is uderpied by its Liquid Studios for SAP Leoardo where Desig Thikig ad digital techologies are used to develop solutios with cliets. Solutios are take from idea to a usable prototype withi four weeks. Challeges Resource availability: Acceture is ot immue to resource issues, eve with oe of the largest SuccessFactors resource pools i the market. O rare occasios cliets have highlighted a slight delay i resource availability. I oe case, due to the urgecy of the situatio, the cliet had to use a differet service provider for a short period of time. While this is rare, cliets should always prioritize commuicatio ad plaig to dissipate the chaces of this happeig. Strog focus o providig additioal services: Cliets sometimes accuse Acceture of appearig to be sales orieted i proposig additioal services. However, oe cliet, who believed they had sufficiet i-house kowledge o certai aspects of the SuccessFactors project, admitted later that they should perhaps have listeed more to Acceture. Cliets with limited ihouse experiece of cloud deploymets should cosider Acceture i selectio, as it is able to share best practices based o its vast experiece i this market. Parterships Key Cliets Operatios Techology Tools ad Platforms Parterships iclude: Workforce Software ADP Beefit Focus Ope Text Acceture targets large ad mid-size eterprises particularly requirig complex HR trasformatios. Geographical coverage i order of reveue: North America, the UK, Cotietal Europe, Middle East ad Africa, Idia, ANZ ad other APAC, Lati America Idustry coverage: All idustries Some publicly disclosed cliets iclude: Alcatel-Lucet, AgloGold Ashati, Avast Software, Barclays, Bosto Scietific, Comcast, Disey, Etihad Airways, FirstEergy, NBC Uiversal, Procter ad Gamble, Timke, TNT Parter level: Platium Year of practice established: 2009 Number of SuccessFactors certified cosultats: 500+ Number of SuccessFactors certificatios: 715+ Total umber i practice: 1,400+ Number of cliets: 180+ Number of egagemets completed or ogoig: 600+ Key delivery locatios for SuccessFactors practice: EALA: UK, Demark, Swede, Switzerlad, Germay, Portugal, Spai, Italy, Frace, Belgium, Polad, Israel, S. Africa, Middle East, South America North America: Uited States, Caada, Mexico APAC: Australia, NZ, Japa, Chia, S. Korea, Sigapore, Philippies, Malaysia, Thailad, Idia Acceture High-Velocity Talet ad HR: Pre-cofigured solutios for fast implemetatio Packaged Cloud Methodology for SuccessFactors: Acceture Delivery Suite (ADS) delivery methodology for SuccessFactors Acceture SuccessFactors Data Coversio Toolkit Acceture SuccessFactors Test Automatio Toolkit Acceture Huma Capital Operatig Model Acceture's HR 360 Diagostic: Tool to capture busiess objectives ad challeges Acceture HR Audit ad Compliace As-a-Service: SuccessFactors extesio o SAP Cloud Platform. Acceture Cloe ad Test for Cloud: SAP Cloud Platform extesio for Employee Cetral; Acceture Quick Documet Builder for SuccessFactors: Automates correspodece set to employees ad maagers Acceture Documet Composer: SuccessFactors extesio o SAP Cloud Platform Acceture s HCM solutios available as a sigle subscriptio-based SaaS agreemet that iclude SAP Cloud Platform 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 28

30 Market Wrap-Up ad Recommedatios

31 Service Provider Selectio Why this service provider? The top reasos cliets we spoke to selected their service provider were: Existig relatioship Techical capabilities Geographic scope: to support multi-coutry deploymets ad also to be able to offer local resources Flexibility Aliged to the cliet s busiess: strog RFP presetatio, uderstadig cliet s culture Proprietary tool or methodology: preseted durig the RFP process Price or value Other criteria that received oe metio iclude: Recommeded by SAP SuccessFactors Service provider brought the A-team Ability to share strategic view Decisio was made by the IT departmet 2017 HfS Research Ltd. Excerpt for Acceture Proprietary Page 30

32 Service Provider Satisfactio The top stregths cliets listed for their service provider icluded: SAP SuccessFactors techical capability: Techology orieted ad valuable advice about ew releases ad fuctioality. Strog project maagemet Flexibility to accommodate cliet requiremets: Particularly true for log-term relatioships. Kowledgeable ad experieced resources: Icludig strog offshore resources. Listeig to cliet eeds Competitive pricig: Especially if usig the offshore model. Full-service offerig: Service provider offers cosultig, implemetatio, ad maagemet services. Problem resolutio focus: The service provider team tries hard to propose alterative solutios whe faced with product limitatios HfS Research Ltd. Excerpt for Acceture Proprietary Page 31

33 Service Provider Challeges The top challeges cliets listed for their service provider icluded: Lack of holistic view: Service provider teams are ofte composed of idividual module implemetatio cosultats who are ot able to provide a holistic view across the HR ladscape. High staff turover: Cosultats are re-deployed to other projects ad cliets, causig disruptio i the egagemet. Wide rage of skill levels: There is a mix of experiece i the teams, with some cosultats havig very little experiece ad kowledge of the product. Not proactive: The service provider is ot proactive eough with ideas ad best practice advice sharig. Poor availability of resources: The cliet had to wait for the relevat expert to become available. Lack of busiess experts: Cosultats able to uderstad the cliet s busiess issues are rare HfS Research Ltd. Excerpt for Acceture Proprietary Page 32

34 Recommedatios: Eterprise Buyers Be demadig but reasoable: Esure that the service provider ca provide all the skills you require. This may iclude HR busiess cosultats ad techical experts for each of the modules you are implemetig. However, ote that there is a shortage of SAP SuccessFactors service resources i the market ad so you will likely get a team of mixed experieced cosultats. If ay of these are usatisfactory, ask your service provider to swap them out. All the service providers i this Blueprit have bee flexible to do this whe requested. Liste to busiess advice: Liste to best practice advice whe the service provider offers it, for example about orgaizatioal chage maagemet implicatios ad likely post deploymet support requiremets. We spoke with several cliets who did ot heed the advice, either because they thought they had eough i-house experiece, or because they thought the service provider was simply tryig to sell them more services. These cliets admitted that they regretted this, ad wishthey had listeed to advice earlier i the deploymet. Ivolve ed-users i the software selectio (but oly if they ca affect the decisio): Whe selectig the software (i this research, the decisio was most ofte betwee SAP SuccessFactors ad Workday), ivolve the ed-users. For ultimate success, it eeds to be extesively used by employees, so it s a good idea to get their feedback early o. They ca test the user iterface, flexibility ad ease of use of the product. However, this is ot ecessarily a useful exercise if the decisio will be made by busiess maagers. Oe referece we spoke with tested the products with employees, who selected Workday. However, this was overtured by the IT departmet who had a corporate SAP strategy. I such situatios it may be better to let employees oly test the selected product HfS Research Ltd. Excerpt for Acceture Proprietary Page 33

35 Recommedatios: Eterprise Buyers Uderstad the pros ad cos of joit software ad services RFPs: It may be a good idea to ask a service provider to preset their chose HR applicatio i your RFP process. You will be able to better uderstad the complete solutio potetial, rather tha the idividual software modules ad the service offerigs separately. However, software ad services salespeople do ot ofte have the same focus, resultig i a cofusig presetatio that may actually fall short of explaiig the full potetial of the solutio to meet your eeds. Clearly explai your busiess requiremets ad plas to RFP respodets to esure that they remai focused o these. Do ot uderestimate chage maagemet! Chage maagemet is oe of the most importat process i all SaaS services egagemets, yet it is also oe of the most commoly overlooked. Most cliets are focused o fast deploymets that radically chage the HR process, sometimes corporatio-wide. The questio you must ask is: is your eterprise ready for it? Focus less o the fuctioality ad testig of the product, ad focus more o the impact of chage o people ad processes. Distribute the SAP SuccessFactors modules to employees as soo as possible to elicit feedback. Esure that your service provider also focuses o your ed users rather tha the product. You ca maage chage maagemet iterally, but esure that you have the right skills i place. Some service providers also provide best practice advice for cliets who wat to keep this i-house HfS Research Ltd. Excerpt for Acceture Proprietary Page 34

36 Recommedatios: Eterprise Buyers (Cotiued) Cotract cosultig services: Cosider the cosultig ad advisory services offered by your service provider, especially if you are embarkig upo a eterprise-wide SAP SuccessFactors deploymet. As well as chage maagemet, service providers ca offer cloud readiess services, SaaS busiess case developmet services, HR strategy cosultig, goverace cosultig, project maagemet plaig services, ad much more. Cliets who iitially deployed a few modules with a fast implemetatio approach ad therefore ofte little aligmet to the busiess, are icreasigly cosiderig cosultig services before their phasetwo deploymets. Have a pla for ogoig support services: You must esure that you have a ogoig support services strategy, whether i-house or with a service provider. The myth that SaaS products do ot require ay support services because they are so easy ad ituitive to use ad update has caught out may eterprises. I fact, because of the regular updates, busiess maagers ad employees eed to uderstad the implicatios of all chages. May service providers offer a flexible support services model, with remote or osite assistace as ad whe you eed it. It is difficult to pla for this if usig i-house resources, so usig a service provider, either solely or i additio, is ofte a good idea. Decide if you are udergoig a trasformatio or a re-platformig: May cliets are simply re-platformig their curret HR process to the cloud, usig the same tools as they did for the o premise solutio. This i itself is of little busiess beefit i the log term. I a trasformatio project, you should re-thik the etire process ad be prepared to make chages to it, theuse the techology to facilitate the chage HfS Research Ltd. Excerpt for Acceture Proprietary Page 35

37 Recommedatios: Service Providers Esure your accout maagers are proactive: Ecourage accout maagers to proactively elicit feedback from cliets. This should be about specific team members as well as about the project progress. Offer to swap out ay team member before a cliet asks you do so if you suspect a problem. Also, prepare the cliet i advace if you eed to move ay resource to a differet project or cliet. Preset services ad support i-house efforts: Clearly preset the value of all offerigs, particularly cosultig ad support services to cliets. Explai the importace of these to esure a successful deploymet without appearig to be too pushy or sales-orieted. Importatly, offer best practice advice to cliets selectig to do aythig i house, for example chage maagemet ad post deploymet support services. Be hoest about commitmet: Qualify out of a RFI if you do ot thik you ca deliver. For example, oe service provider cadidly iformed the cliet that it would ot be able to offer its best cosultats, or The A Team for the umber of years the cliet required. The cliet appreciated the hoesty ad the service provider avoided a potetially egative egagemet HfS Research Ltd. Excerpt for Acceture Proprietary Page 36

38 Recommedatios: Service Providers Ivest i or parter for payrollservices: As the SAP cloud payroll solutio picks up mometum i the ext few years, you must have access to payroll services capabilities. Payroll is a complicated specialist skill that oly a few of the service providers i this Blueprit have. Now is the time to develop payroll expertise or parter to be able to offer this to cliets. Parter for geographic coverage: If your SAP SuccessFactors services practice does ot have global coverage, cosider parterig to gai fast access to additioal skills. For example Aaso ad Wipro are parterig with Arago Cosultig i Frace ad Sychroy Global i APAC for additioal regioal capabilities. Ivest i busiess experts: Esure that there is a seior busiess cosultat who ca provide a holistic view of the SAP SuccessFactors deploymet for each cliet. These skills are rare i the market, so you may have to trai them i-house. As these cosultats are so rare, this is a differetiator i the SAP SuccessFactors services market HfS Research Ltd. Excerpt for Acceture Proprietary Page 37

39 About the Author

40 Khalda De Souza Research Director, SaaS Services, HfS Research Uited Kigdom KHALDA DE SOUZA Research Director, SaaS Services Khalda maages the SaaS Services research for HfS. This ivolves trackig how service providers are developig their SaaS Services strategies as well as eterprise cliets requiremets ad eeds i this market. Khalda tracks the market developmet i several specific SaaS services areas, icludig Workday, SAP SuccessFactors, Salesforce ad Microsoft Dyamics. Khalda joied HfS Research i October Prior to HfS, Khalda was a seior level IT services research aalyst at Garter for early 20 years. I that time, she maaged the Europea research for several areas icludig etwork ad IT security ad busiess applicatios. Khalda has led key research deliverables such as Magic Quadrats for both Europe ad global markets at Garter. Khalda has extesive experiece i providig strategic advice to both IT services providers ad customer orgaizatios globally. For providers this icludes, but is ot limited to, chael strategies, product positioig, competitive itelligece, market treds, ad forecast aalysis. For customers, Khalda has provided isightful guidace o sourcig ad vedor selectio strategies. Khalda has a BSc. from Asto Uiversity i Iteratioal Busiess ad Frech. She lives i the UK with her husbad ad three childre HfS Research Ltd. Excerpt for Acceture Proprietary Page 39

41 The HfS Missio: Revolutioizig the Idustry HfS missio is to provide visioary isight ito the major iovatios impactig busiess operatios: automatio, artificial itelligece, blockchai, digital busiess models ad smart aalytics. We focus o the future of operatios across key idustries. We ifluece the strategies of eterprise customers to develop operatioal backboes to stay competitive ad parter with capable services providers, techology suppliers, ad third party advisors. HfS is the chagig face of the aalyst idustry combiig kowledge with impact: ThikTak model to collaborate with eterprise customers ad other idustry stakeholders eterprise customer iterviews aually across the Global A highly experieced aalyst team. Urivalled idustry summits. Comprehesive data products o the future of operatios ad IT services across idustries. A growig readership of over oe millio aually. "The As-a-Service Ecoomy" ad "OeOffice are revolutioizig the idustry HfS Research Ltd. Excerpt for Acceture

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