SAP Partner
11.24.2020

Cut down the cost of SAP Programmes SoW IT Services Model

By Jonathan Hurren

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2020 has taught us many things, but one of the key business lessons we’ve learned so far is that overspending on SAP programmes is never a good idea.

If you’ve been running your supply chain through dispersed, independent contractors or fallen for a consolidated but overly complex and expensive systems integrator, you know what we’re talking about. The good news is, you don’t have to accept that reality.

bluewaveCONSULT has partnered with leading SAP experts to offer a true IT services model based on formal Statement of Work (SoW) agreements. With our solution, you will:

  • Cut down the cost of SAP programmes
  • Gain access to the very best SAP people
  • Offload project delivery
  • Ensure the highest quality of service
  • Future-proof your supply chain
  • Eliminate the risk of IR35 non-compliance

Here’s everything you need to know.

SOW – Outcome-based Agreement

In the course of the agreement, bluewaveCONSULT finds, screens and onboards the best SAP professionals for your business. We also provide oversight and quality control to make sure your programmes start and conclude according to best industry practices.

You can think of the approach as an alternative to traditional touch-and-go contracting where your SAP workforce operates independently, based on a daily rate.

This is also an excellent alternative to the systems-integrator approach that’s often burdened by unnecessary complexity, scope creep and uneven quality of service.

Unlike SI’s, the SoW agreement allows bluewaveCONSULT to deliver in select areas of your SAP programme one step (SoW) at a time. Clients can easily carve out specific teams to deliver against key milestones through bluewaveCONSULT.

  • S/4HANA Project Assurance
  • Advisory & Project Turnaround
  • Programme Leadership
  • Technical Leadership
  • Enterprise/Solution Architecture
  • Change Management
  • Functional
  • Business Process
  • Technical (e.g. ABAP, BASIS, CPI)
  • Niche Technology (e.g. Retail, Ariba, SF)
  • Analytics (e.g. SAC, BO, BW/4HANA)
  • Cloud
  • Data
  • Testing
  • Cutover
  • Training (Enable Now)
  • Post go-live CoE strategy

6 benefits of the bluewaveCONSULT
Statement of Work model

1. Better oversight and control

Engaging several independent SAP contractors, whether it’s through a PSC, an agency or an umbrella company, can quickly turn into a project-management disaster. Not only do you have to communicate with each person individually, but you also need a way to coordinate their work. 

A 2017 report by the Project Management Institute (PMI) found that some of the most common causes of project failure are poor communication (30%), shifting objectives (36%) and poor change management (28%).(1)    

A Statement of Work provides a more holistic approach. Since bluewaveCONSULT becomes your single point of contact for all aspects of the project, you can easily manage work in a centralised way and make adjustments when project requirements shift.

2. Focus on outcomes

As a 100% outcome-based model, the Statement of Work keeps the quality of service in focus. Since all requirements and quality standards are clearly defined in the document, you get exactly what you pay for, from launch through planning to execution. 

The agreement ensures even quality of service in every department that benefits from off-payroll SAP expertise. Thanks to a series of milestones, you can keep your finger on the pulse and make sure the project is always on track.

3. No unnecessary risks

In one of our previous articles, we discussed how you can use a Statement of Work to mitigate the risk of IR35 non-compliance. But did you know the model also acts as an additional layer of protection against poor quality of service?

Since the document covers all aspects of an SAP project, including deadlines, quality standards and testing procedures, you have full control over the service provider’s performance. And that means no failed expectations, timely delivery and money well spent.

 4. Cost-effectiveness

Compared to services provided by SAP systems integrators, Statements of Work significantly reduce programme costs without compromising the quality. That means you get the same five-star service and support but don’t overpay for things you don’t need.

In addition to the net financial gains, SoW agreements are also more manageable as they usually involve payment schedules divided across pre-defined milestones. In other words, you only pay for what’s delivered and approved.

5. Access to the best SAP people

The quality of SAP programmes powered by systems integrators or unverified independent contractors is often a mixed bag. What complicates the matter even further is the fact that the best SAP people avoid the spotlight and are usually difficult to engage.  

According to Ensono, 38% of businesses operating on ECC are struggling to make the move to S/4 HANA because they lack the expertise to do so.(2)

With a Statement of Work on board, not only will you gain access to our exclusive, hidden network of SAP professionals, but you’ll also narrow down the specific sets of skills needed for the SAP project at hand. Just so the SAP skills shortage doesn’t keep you up at night.

6. Better use of resources

Bureaucracy and administrative bottlenecks can stall even the most ambitious SAP projects. On top of day-to-day operations, there’s contractors’ paperwork, contracts, invoices, pending payments and soon status determinations to meet IR35 requirements.

A Statement of Work transfers the administrative obligations to bluewaveCONSULT so you can focus on delivering a successful SAP business transformation. It also gives us the flexibility to bring in help and expertise when needed, all within the scope and budget pre-defined in a SoW document.

 Conclusion

Formal Statement of Work agreements are a holistic and cost-effective alternative to systems integrators and traditional, ad-hoc SAP contracting.

The flexibility of SoWs lets you gradually roll out the model and apply it when and where it matters most. It also gives your business the freedom to selectively verify the quality of the service before moving the complete project delivery to bluewaveCONSULT.

It doesn’t matter if you want to cut programme costs, ensure IR35 compliance or source the best  SAP professionals. Implementing our Statement of Work solution will help you achieve all that, and much more.

Are you ready to future-proof your SAP programmes and prepare for 2021?

Let us know at hello@bluewaveselect.com or +44 (0) 1423 559 559.

Resources

  1. https://www.ensono.com/blog/why-have-businesses-been-slow-migrate-s4hana
  2. https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pulse-of-the-profession-2017.pdf?sc_lang_temp=en

 

 

 

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