SYS-CON MEDIA Authors: Elizabeth White, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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Managed Services Outsourcing Will Rise Through 2016, Says American Digital State of SAP Report

American Digital Corporation, an advanced information technology (IT) solutions provider, today released its 2014 State of SAP Report, which reveals five trends driving SAP use this year. 61 percent of IT leaders plan to invest in outsourced managed services in the next two years, while only 39 percent will depend on in-house resources for SAP support. Despite an overall growing dependence on third party support, there remains a hesitancy to outsource infrastructure. SAP HANA, SAP Mobile and Managed Cloud rank as the most in-demand SAP offerings.

“SAP environments are relying more heavily on outsourcing to maximize overall efficiency,” said Bill Loupakos, VP of Professional Services, American Digital. “Today we see companies comfortable with outsourcing application support, but many are still holding on to the infrastructure in-house. Providers have evolved to meet these growing market demands, so companies can maximize cost savings and efficiencies and focus their intellectual capital on their business processes and compliance.”

Key findings of the 2014 State of SAP Report include:

IT leaders will continue to rely on outsourced partners to deliver SAP value

  • 56% of IT leaders outsource the support of SAP maintenance and delivery

Managed services outsourcing set to grow through 2016

  • 61% of IT leaders plan to invest in outsourced managed services in the next two years
  • Only 39% will depend on in-house resources for SAP support

Application & database support most outsourced

  • 68% of IT leaders receive outsourced application support
  • 47% utilize basis/database support
  • Only 5% receive infrastructure/platform as a service support

IT leaders will keep control of their data centers

  • 74% of IT leaders will retain full control of their data centers
  • 26% will use a combination of internal resources and outsourced capability
  • 0% will fully outsource the running of their data centers

Hybrid SAP models dominate future SAP investments

  • 63% of IT leaders plan to adopt a hybrid model – part physical and part virtual private cloud – for their SAP environment
  • This is up 20% from those engaging in a hybrid environment today

About the American Digital State of SAP Survey

The 2014 State of SAP Survey by American Digital gathered responses from the IT community from February 15th, 2014 to March 12th, 2014 about their SAP usage. Invitations to participate were sent to IT decision makers of companies ranging from $1M to more than $1B in revenue. Sixteen percent of respondents were CIOs, 20 percent were VPs, 36 percent were technical managers and 28 percent were technology professionals.

About American Digital

American Digital is a leading and award-winning information technology solutions provider. We have more than 25 years of success in helping enterprise firms harness the power of complex technology solutions to create true efficiency and real business value. Focused on customer service, we help clients achieve their business goals through streamlining information, creating and implementing infrastructure plans, improving data management, maintaining compliance and protecting critical company data. For more information, visit www.americandigital.com.

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