Sovereign-by-design SAP delivery gains urgency in Germany as enterprises add AI-supported automation to control risk, ISG Provider Lens® report says
Enterprises in Germany are modernizing SAP environments through more controlled S/4HANA transitions, using AI-enabled automation and stronger governance to preserve business continuity while meeting sovereignty and compliance requirements, 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 Germany finds that enterprises are treating SAP migration as a lifecycle decision, aligning implementation choices with operational readiness and scalable innovation earlier in the process. With SAP ERP Central Component (ECC) nearing the end of mainstream support, organizations are moving toward SAP S/4HANA while preserving business continuity and improving cost transparency.
"German enterprises are no longer looking at SAP modernization as a technology migration alone," said Matthias Paletta, director at ISG. "S/4HANA programs are becoming the point where clients define data access and operating responsibility, then decide how much process change the business can absorb."
Sovereign-by-design delivery is becoming a central requirement in German SAP programs. Enterprises are going beyond broad questions about hosting location to address specific requirements for data residency and access control. They also expect clear audit evidence and division of responsibility among SAP, hyperscalers and service providers, especially as regulations and cybersecurity concerns heighten attention to third-party dependencies.
German buyers are taking a pragmatic approach to SAP S/4HANA transformation. Many enterprises are avoiding large, disruptive programs in favor of phased transitions that protect critical operations while reducing technical debt. This shift underscores the importance of a clean core discipline, with SAP Business Technology Platform (BTP) increasingly used as an extension layer for innovation. Without governance, however, BTP growth can recreate the complexity enterprises are trying to remove.
Automation is now a baseline expectation of providers’ transformation and run services. Enterprises increasingly seek tool-supported discovery and automated testing to make the delivery of transformation outcomes more predictable. In managed services, they expect AIOps and generative AI to reduce repetitive work, support faster restoration and preserve change control. GenAI is also becoming more relevant in SAP analysis and operations, but German enterprises continue to demand auditability and human accountability, ISG says.
"SAP buyers in Germany are asking providers to connect transformation and operations more tightly," said Oliver Nickels, lead author of the report. "The strongest provider models combine automation, governance and operational proof so clients can modernize without adding new risk."
The report also explores other SAP ecosystem trends in Germany, including rising demand for integrated transform-and-run governance and growing use of portfolio management for BTP and AI initiatives.
For more insights into the SAP-related challenges faced by enterprises in Germany, plus ISG’s advice for overcoming them, see the ISG Provider Lens Focal Points briefing here.
The report for Germany evaluates the capabilities of 41 providers across four quadrants: SAP S/4HANA System Transformation, SAP S4HANA System Transformation — Midmarket, SAP Application Managed Services and SAP Business AI and Business Technology Platform (BTP) Services.
The report names Atos and NTT DATA as Leaders in all four quadrants. Accenture, Capgemini, HCLTech, Infosys, TCS, T-Systems and Wipro are named as Leaders in three quadrants each. Cognizant, MHP and Tech Mahindra are named as Leaders in two quadrants each, while adesso SE, All for One, Arvato Systems, DATAGROUP, DXC Technology, Nagarro, Syntax and valantic are named as Leaders in one quadrant each.
In addition, PwC is named as a Rising Star — companies with a "promising portfolio" and "high future potential" by ISG’s definition — in three quadrants. The report also names adesso SE as a Rising Star in two quadrants.
In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2026 among SAP ecosystem service 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.
Customized versions of the report are available from DATAGROUP, MHP and T-Systems.
The 2026 ISG Provider Lens SAP Ecosystem report for Germany 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260625358328/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3132
laura.hupprich@isg-one.com
Philipp Jaensch, ISG
+49 151 730 365 76
philipp.jaensch@isg-one.com