Companies in Asia Pacific Accelerate SAP Modernization
Companies in Asia Pacific Accelerate SAP Modernization
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Key Terms
sap s/4hanatechnical
An enterprise resource planning (ERP) platform that combines core business functions—such as finance, supply chain, sales and manufacturing—into one software system and processes data much faster than older systems by using a modern, memory-based database. Investors care because adopting or upgrading to this platform can change a company’s costs, speed of operations and ability to scale, affect recurring software or cloud spending, and influence competitiveness and future revenue growth.
sap business technology platformtechnical
SAP Business Technology Platform is a cloud-based toolkit that helps companies collect, connect and analyze business data, build or extend applications, and automate processes across their software systems. Think of it as a central utility hub that lets different business apps share information and work together more efficiently; investors watch it because adoption affects a company’s ability to scale, cut operating costs, launch new services faster, and — for the platform provider — generate steady subscription revenue.
sap business aitechnical
SAP Business AI is a set of artificial intelligence features built into business software that helps automate routine tasks, analyze company data, and suggest actions—think of a smart assistant that reads your reports, spots trends, and drafts recommendations. For investors, it matters because these tools can speed decision-making, cut operating costs, and improve forecasting accuracy, which can boost a company’s efficiency, competitiveness, and potential profitability.
sap cloud application lifecycle managementtechnical
SAP Cloud Application Lifecycle Management is a cloud-based set of tools that helps organizations plan, deploy, monitor, update and retire business software throughout its life. Think of it as a control tower for enterprise applications that reduces surprises by coordinating changes, ensuring systems stay available and compliant, and speeding up new feature delivery—factors that can lower costs and operational risk for investors.
hybrid cloudtechnical
A hybrid cloud is a computing setup that mixes a company’s own servers with rented services from public cloud providers, letting businesses choose where each application and dataset lives. Think of it like keeping valuables in a private safe while also using a nearby storage unit for overflow; this matters to investors because it influences a company’s costs, flexibility, regulatory risk and ability to scale or offer new services, all of which affect profitability and competitive strength.
public cloudtechnical
A public cloud is a service that provides computing resources, like storage and software, over the internet for multiple users or organizations. Think of it as renting space in a shared digital storage unit or using a shared utility, where the provider manages the infrastructure. For investors, public clouds enable flexible and scalable technology solutions, often at lower costs, making them a key component of modern business operations.
data migrationtechnical
Data migration is the process of moving a company’s information from one computer system, storage location, or format to another—like packing and relocating boxes when someone moves house and making sure each item is labeled and intact. For investors it matters because migration projects can change costs, cause temporary service disruptions, create legal or compliance risks if records are lost or mishandled, and often affect long‑term efficiency and competitive position.
audit trailstechnical
A record of every step, change and action taken on financial records, transactions or documents that creates a clear ‘breadcrumb trail’ from start to finish. Investors care because it lets auditors, regulators and shareholders verify that numbers are accurate, trace the cause of errors or suspicious activity, and assess whether controls are working — much like CCTV footage helps confirm what really happened in an incident.
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Organizations pursue cloud transitions, data migration, AI readiness while minimizing risk, ISG Provider Lens® report says
SYDNEY--(BUSINESS WIRE)--
Enterprises across Asia Pacific are carrying out disciplined SAP transformation initiatives in compressed timelines as platform transitions become unavoidable, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® SAP Ecosystem report for Asia Pacific finds that many organizations are adopting SAP S/4HANA and cloud-centric operating models as the end of support for ERP Central Component systems approaches in 2027. As they carry out these migrations, they are focused on system stability, auditability and long-term upgrade readiness.
“Enterprises in Asia Pacific are approaching SAP transformation with more rigor and clarity as timelines tighten,” said Michael Gale, partner and regional leader, ISG ANZ and Asia Pacific. “They place a high value on structured execution to avoid disruptions and ensure long-term resilience.”
Enterprises in the region are embracing clean core principles and eliminating unnecessary customization to keep their central SAP systems stable. Organizations are standardizing business processes while adding enhancements through SAP Business Technology Platform extensions to preserve upgrade flexibility. Teams are also requiring detailed documentation of design decisions and clear separation between standard functions and differentiated capabilities.
Cloud adoption models vary across the region, reflecting different regulatory and operational environments. Enterprises in Australia and New Zealand are embracing cloud-native tools and public cloud architectures aligned with hyperscaler ecosystems. In contrast, many companies in India and Southeast Asia are building hybrid or private cloud environments due to data residency requirements and the complexity of local business operations.
Enterprises in Asia Pacific are cautiously integrating SAP Business AI capabilities into their core processes, such as workforce productivity, supply-chain planning and forecasting, while requiring explainable models, transparent audit trails and human oversight of automated decisions. Most organizations carrying out data migration in the region prefer selective data transitions for greater flexibility and reduced disruption. This approach allows them to retain critical historical data while lowering migration risk, though it requires strong data harmonization and early remediation planning, ISG says.
“Companies in Asia Pacific are looking to AI for significant operational improvements but want to retain control over AI deployments from the start,” said Maharshi Pandya, senior lead analyst, ISG, and lead author of the report. “By helping enterprises prepare for and carry out AI implementations responsibly, providers help clients maintain stability and lay the groundwork for future capabilities.”
The report also explores other trends in the SAP ecosystem in Asia Pacific, including increasing reliance on SAP Cloud Application Lifecycle Management and a growing enterprise emphasis on auditability and system stability during multi-country transformation programs.
For more insights into the challenges faced by enterprises in Asia Pacific using SAP, plus ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates the capabilities of 34 providers across three quadrants: SAP S4/HANA System Transformation, SAP Application Managed Services and SAP Business AI and Business Technology Platform (BTP) Services
It names Accenture, Capgemini, Deloitte, HCLTech, IBM, Infosys, TCS, Tech Mahindra and Wipro as Leaders in all three quadrants. DXC Technology and NTT DATA are named as Leaders in two quadrants each.
In addition, Atos is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Hitachi Digital Services is named as a Rising Star in one quadrant.
In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2026 among SAP ecosystem providers. Infosys earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2026 ISG Provider Lens SAP Ecosystem report for Asia Pacific is available to subscribers or for one-time purchase on this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
