Managed Service Vs In-House for SAP Digital Transformation


Unlock Digitalization Benefits Faster and More Effectively

Have you made the business decision to undertake SAP digital transformation to capture the benefits of employing SAP business management software? Doing so will help transform your previously unused data into meaningful information. The benefits of this include:

  • Total visibility of your entire business
  • More effective control of your business and customer lifecycles
  • Reduced security risks and improved compliance
  • Elimination of human error by automating processes
  • Improving the customer experience
  • Improved productivity

The choice you now must make is whether to execute your SAP digital transformation in-house or by using a managed service.

Do You Have the Team to Execute Digital Transformation?

Few businesses have the internal talent needed to execute digital transformation. There is a unique package of skills required, from the top down. Having decided on your strategic path, we’ll assume that your C-suite is on board and that the project is being championed throughout your management hierarchy.

Now it’s time to build your technical team. You’ll need a unique set of skills and team members. Depending on your business needs, these may include:

  • Architecture leads
  • Enterprise architects
  • User experience employees
  • Front-end developers
  • Software engineers
  • IoT engineers
  • Testers

Digital transformation doesn’t happen by itself. It takes a large team of experts. These people don’t only need technical skills. You must ensure that they understand your business needs, the issues that your users face, and that each team member is engaged in the long-term success of your project.

What If You Don’t Possess the Team You Need?

Building a team is a huge investment. It takes a huge amount of time, too. If you’re starting from scratch, even longer. Instead of this, you may consider partnering with a managed service. This will allow you to outsource your requirements, use only the expertise you need when you need it, and thus reduce pressure on your existing IT team.

The benefits of a managed service being deployed to lead execution of your digital transformation include:

·      Fast Start

Partnering with a managed service provider negates the need to source all the skilled employees you need. They already have a team available to work on your digitalization project, from conception to implementation.

·      Low and Predictable Costs

Your in-house team comes with many unexpected costs. A managed service provider (MSP) will charge a set amount monthly, providing dependable services and infrastructure at a set and known cost.

Your costs are lowered by reducing infrastructure costs as well as employment costs. You can downsize your infrastructure by using the MSP’s servers (saving money on hardware and energy). You will reduce the expense of licensing and training. IBM has estimated the cost savings at around $147k per 100 employees.

·      Scalability

Using the resources of your MSP, your business is immediately scalable. There is no need to add an expensive in-house member to your IT team, no need for training and onboarding. You won’t need to be worried about losing an employee, either.

An MSP enables you to expand and contract at will – flexibility you don’t have when an in-house team is implementing your digital transformation project.

·      Compliance

As you execute transformation, it is essential that you conform to all compliance issues including maintaining the safety and security of your data. An in-house team must maintain their knowledge of hundreds of compliance rules and regulations, following each one. The consequences of not doing so can be loss of reputation, sanctions on your business, and financial fines.

Your MSP removes all these worries, taking on the responsibility of compliance for you, and advising you of issues that may arise.

·      Always Updated Technology

A good MSP will help you take advantage of its continually updated technology. The result is faster updating of tech in your infrastructure – and at a lower cost.

·      A Small Initial Investment

Building a new team, investing in hardware and infrastructure, and developing your digital capacity is a big financial commitment. The initial cost of this can be tremendous. Partnering with an MSP eliminates a large part of the initial investment you would otherwise need to make.

This helps you to move faster and more flexibly, with the costs now considered as an operational cost rather than a capital expense. Software updates will be included in your MSP agreement.

A Meaningful Relationship with an Expert Team

Partnering with TotalTek as your MSP provides you with access to the IT and technology expertise you need for your digital transformation, without the need to build an expensive IT team. Our team’s expertise and experience will fill any gaps in your team, and you won’t need to train your team for one-off milestones throughout the project.

We work with you, as an extension and partner to your business. A partner who understands your business and will help you deliver all the benefits of digital transformation, via an expert team with the precise skills needed, when needed.

To learn more about how we can help you to execute and benefit from SAP digital transformation faster and in the long-term, contact TotalTek today.