SAP spend is 'rising in UK'

Spending on new and existing SAP projects will recover as economic conditions improve in 2010, consultancy Pierre Audoin (PAC) has claimed.

The market will return to growth in 2011, as investment in high priority projects offsets continuing pressure on discretionary budgets.

Spending on SAP project services will increase by 3.4 per cent in 2011, it predicts, following a decline of 0.6 per cent this year (2010). Market conditions remain ‘challenging’, but some projects that have been put on hold in the last 12-18 months will be restarted in the second half of this year.

Growth in SAP consulting and systems integration services will be driven by key areas, such as SAP BusinessObjects enterprise software. Business intelligence is another driver, according to PAC, as enterprises seek to improve the transparency of their business and management of customer data.

The economy downturn has also prompted more businesses to maintain a better view of their financial status, and to meet new requirements around analytical reporting. Birmingham City Council, for instance, is one major UK account that has recently adopted SAP’s business intelligence solution, PAC reports; SAP has made some significant progress in the UK core-retail and core-banking segments, securing deals with Marks & Spencer, along with the Nationwide Building Society.

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