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SAP Services India Talent Outlook 2013

SAP Services in India has grown by leaps and bounds in the past decade giving rise to umpteen numbers of clients adopting the enterprise software and gaining benefits beyond visibility. The intangible benefits by adoption have been the driving force behind SAP's rise to the top of enterprise software segment across the globe. But the price factor has always pinched the company especially in emerging markets.

Bengaluru, India, March 12, 2014 --( SAP Services have been an area where a lot has happened over the last 15 years. Since the inception SAP services has always gone up the ladder. With the increase in demand of the skill, hiring has also increased across all modules in SAP. Initially there was huge demand in the vanilla skills but recent trends suggest an exponential growth for the niche modules. There is mass hiring for the regular skills like SAP ABAP, SAP BASIS, SAP FICO and SAP SD. But hiring in latest SAP platforms like HANA, Mobility and ISU has seen a hike in the last few couple of years.

ResearchFox intend to understand the SAP Services Market on the perspective of working population and try to decipher the myths surrounding the talent. What started out as a talent pool initiative has transformed into a report which contains invaluable insights assisting in decision making for anyone planning to diversify or start services in SAP in India.

ResearchFox has segmented the Indian SAP Services talent Pool by geography, type of companies, Skills, nature of employment & services. The geographical segmentation comprises of tier I, tier II cities & Upcoming IT hubs. The companies are being classified into Tier I, Tier II and SMBs according to a few parameters like geographical presence, number of employees working, revenue generated and so on. To emphasize more on the human resource, their skills have been split into Technical, Functional and Techno-functional skills. Further classifications have been made on the nature of employment like full-time employment, flexi hiring and the captive resources. On the basis of services rendered by the companies to their clients, they are categorized into consulting firms, support/enhancement firms and companies that offer implementation service.

The SAP market in India has grown steadily over the last few years and the primary reason for this enormous growth can be attributed to the need of better customer & process management. With the growth of the market talent pool has also grown exponentially.

Despite the mixed training and certification opportunities available in India, companies need to invest more money on scaling up the talent of SAP candidates internally with the latest version & technology trends. This would resolve the problems of quality resource availability and better execution of the projects. At times, the companies also need to cross skill the relevant SAP talents and scale them up according to the client requirement which
Will help them increase the utilization ratio.

Hiring has been moderate in IT services over the last year. Same has been the trend in SAP services as well. Fresher hiring in SAP services across companies has been around 25% with the rest taking place for experienced candidates. But is has been observed that around 60% of the total hiring taking place across the top 20 SAP service providers.

Currently SAP Services Talent Pool in India is 1, 43,000 and market size is $4 billion. More than 70% of the overall Tier I service providers in India started off their SAP practice before 2001. The industry observed an exponential growth of companies in between 2005-2008 just before the global recession. Till 2004, the ratio of Tier I to Tier III SAP service.

Providers were 1:1.6 which later increased to 1:137 post 2005. Most of the premier companies started off their business with low end support or implementation Jobs but had later mastered the art of consulting over the last few years.
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ResearchFox Consulting
Arun Hegde

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