Companies in Asia Pacific Accelerate SAP Modernization

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.