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SAP Market in 2021

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I decided to write an end of the year post for SAP Steps and the theme of this post will be how was the year 2020 and what is my feeling for the year 2021 when we think about the SAP market.

2020

The year 2020 started very strong, with several opportunities and large projects unfolding in the market.
Myself, I started the year with a great trip to Zurich (Switzerland) to learn a little more about the template for a great project that was about to start.
That was in February (just when COVID started to appear in the news).
We started the project, several people from Europe came to Brazil to do the fit-gap workshops, however, at the end of the second week of workshops, the global CEO of the company requested that all employees return to their countries of origin, because travel would be banned for an indefinite period.
There the great “change” of 2020 began.
Shortly afterward, our project was paralyzed, because, due to its great complexity, acting remotely, would make the project extremely difficult and with a high risk of failure.
I heard similar stories from several consulting friends here in Brazil and other countries around the globe.
The SAP market was strongly affected on all continents and several professionals were deallocated for a good period (many continue).
After the big initial scare, several companies adapted and many projects were resumed (some even started), but 2020 ended up being far from what most professionals in the SAP market expected.
The “flood” of S4hana projects did not happen.

2021

And the year 2021? How is it going to be?
It is practically impossible to answer this question, but after talking to many friends in Brazil and other countries, I can try to “guess” how the market will behave.
Today (20/12/2020), we have some vaccines for COVID already approved in the United States and England, and, I believe that soon we will have many other vaccines and approvals in several countries around the globe.
This makes people more optimistic about investments and the SAP market itself.
We can see this by looking at the stock exchanges.
Many exchanges are very close to their historical maxims.
However, I prefer to be more conservative in this 2021 analysis.
Unfortunately, it is practically impossible to vaccinate most people in the world in 2021, mainly due to the productive capacity of pharmaceutical companies, and this should lead to this crisis lasting a little longer than most people were thinking.
Of course, to end this crisis, in my opinion, it is not really necessary for everyone to be vaccinated, because after a large part of the population is immunized, we will have a much safer world.
However, what is the big problem?
The uncertainty.
When we think about SAP projects (mainly in large S4 greenfield projects), investments are very high and, as one of the great concepts of these projects is to have a robust system and with few developments, all processes must be very well designed and detailed.
Why do I say that?
Because for an executive of a large company it is a very difficult decision to invest now in a 2/3 year project and to risk stopping the project (due to a worsening in the world scenario) or even in the quality of the project (being 100 % remote).
Some companies will start projects in 2021 (several in fact), while others will wait a little longer to understand how vaccines will unfold in 2021.
My personal opinion is that the first semester of 2021 will still be challenging, but as things go, I believe that the second semester will be very heated for the SAP market, and in 2022 we will have numerous projects starting (as I imagined it would be in 2020) and we, SAP market professionals, we will have numerous opportunities for great projects.

Hints

I really suggest that you take advantage of this quarantine time to improve yourself (both in your professional and personal life), to study and prepare for the great opportunities that the SAP market will bring us.
Remember that ECC support was extended until 2027 (in fact 2030), and 10 years to carry out so many projects may seem like a long time, but in fact, it is not.
Get ready for great opportunities and don’t waste your time on the internet or watching Netflix all day.
I wish you all a Merry Christmas and may 2021 be an incredible year for all of us!

If you have any suggestions (including subjects you would like to read about), feel free to send an email to sapsteps@sapsteps.com.

A big hug,

Bruno César

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Working for 16 years in the area of information technology (more than 10 years specifically as an SAP consultant), Bruno César is an SAP consultant specialized in Supply Chain having worked in several global projects for companies around the globe. In addition to SAP, he is also dedicated to the area of financial investments and writes books.

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