ISG Study: 49% Skip Re-engineering in S/4HANA, 60% Overrun Budgets
ISG’s State of SAP Migrations report finds fewer than 20% of enterprises fully re-implement SAP processes when moving to S/4HANA and 49% carry out little or no re-engineering, limiting long-term automation and AI benefits. It also reveals nearly 60% of SAP migrations exceed budgets and schedules due to weak governance and scope creep.
1. ISG Reports Accelerated AI Adoption in U.S. Healthcare
Information Services Group (Nasdaq: III) today released its 2025 ISG Provider Lens® Healthcare Digital Services report, finding that U.S. payers, providers and life-sciences organizations are shifting from incremental digital investments to enterprise-wide transformations. Healthcare spending now approaches one-fifth of U.S. GDP, and ISG data show that nearly half of large health systems have implemented AI-enabled automation in claims processing, prior authorization and revenue cycle management. The report evaluated 35 service providers across four quadrants, naming Accenture, Cognizant, Deloitte, HCLTech, TCS and Wipro as Leaders in all categories, while Persistent Systems earned recognition as the global ISG CX Star Performer for customer experience.
2. Asia Pacific Enterprises Modernize Networks with Internet-First Models
In its 2025 Enterprise Managed Network Services report for Asia Pacific, III finds that 63 providers were assessed across four quadrants, including Network as a Service and Managed Network Services Evolution. Enterprises are replacing legacy circuits with SD-WAN and SASE architectures to support AI, automation and distributed workforces. Accenture, GTT, NTT DATA, Orange Business, Singtel, Tata Communications, Telstra and Vodafone Business achieved Leader status in three quadrants each. Rising Stars such as Birlasoft, HCLTech and Wipro are gaining traction with co-managed, API-first network-as-a-service models that shift spending from CapEx to OpEx.
3. ISG Study Highlights Risks in SAP S/4HANA Migrations
III’s State of SAP Migrations report, based on a survey of over 200 senior IT decision-makers, reveals that fewer than 20% of organizations fully re-implement business processes during SAP S/4HANA transitions, while 49% carry out minimal or no re-engineering. Nearly 60% of migrations are behind schedule or over budget, with weak governance cited as the primary cause of scope creep and delays. ISG warns that preserving legacy processes risks limiting the long-term benefits of automation, analytics and AI, and recommends establishing clear vendor decision rights, rigorous data-readiness criteria and independent oversight to safeguard transformation outcomes.