Q: How much do SAP consulting companies charge for their services?

The average cost of SAP consulting companies&rsquo; services ranges between $50 and $150 per hour. Beyond the average, you can come across rates that go as low as $4 and as high as $1,500 per hour. Obviously, the main factor that will dictate the cost is the project complexity. Company stature, location and size as well as project deadline will also have some influence. When it comes to project-based cost, some agencies&rsquo; pricing plans start at $1,000. Others accept projects valued at $10,000 - $50,000.

Question 1

What is a SAP consulting company?

Accepted Answer

A SAP consulting company is an agency that provides professional guidance and advice on integrating and managing SAP software products to help clients run their business operations more effectively and efficiently.

This can apply to different areas including:

Finance
Procurement
Logistics
Supply chain
Manufacturing
Human resources
Sales
Customer service
Master data

Their job is to support businesses in achieving digital transformation and using more agile solutions that allow them to increase productivity, deal with complex functionalities and meet the needs of their customers successfully.

SAP stands for Systems, Applications and Products in data processing, which correctly implies that its software is both robust and all-encompassing.

The software is used for ERP or enterprise resource planning.

Essentially, enterprise resource planning streamlines all major initiatives that a business is executing and logistical information that they have, such as revenue, employee salaries and performance.

When businesses have access to this information, they can make more informed decisions strategically aimed at growing the business.

ERP software, such as SAP, can be customized for a business’s relevant data and real-time reporting needs.

Question 2

What do SAP consulting firms do?

Accepted Answer

The core offerings of SAP consulting companies include:

Advisory solutions: They evaluate the client’s needs with SAP solutions and give professional advice to ensure the solution the business uses runs smoothly and correctly.
Strategy: SAP consulting companies in the US empower businesses to create stronger business growth strategies across the board. They work with employees to determine strengths, weaknesses and goals as well as identify the SAP functions they need to achieve their objectives.
Implementation and customization: This process involves installing and setting up the SAP system while adapting its functionalities to the business’ specific preferences, needs and requirements.
Data migration: These agencies extract data, transform it into the desired format and then move it to different storage platforms.
Quality assurance testing: This includes using cutting-edge tools to detect and fix errors to ensure the solution runs smoothly.
Training: A SAP consulting company trains employees so that they understand the SAP system functionalities well and are able to use it properly.
Reporting and analytics: These companies extract meaningful insights. They monitor these insights and key metrics to see if the businesses are performing as expected.
Support and maintenance: This activity includes regular inspection of the solution, preventive maintenance, repairs and other key steps that will ensure high-performance at all times.

Question 3

How much do SAP consulting companies charge for their services?

Accepted Answer

The average cost of SAP consulting companies’ services ranges between $50 and $150 per hour.

Beyond the average, you can come across rates that go as low as $4 and as high as $1,500 per hour.

Obviously, the main factor that will dictate the cost is the project complexity. Company stature, location and size as well as project deadline will also have some influence.

When it comes to project-based cost, some agencies’ pricing plans start at $1,000. Others accept projects valued at $10,000 - $50,000.

Question 4

Why hire a SAP consulting company?

Accepted Answer

77% of all business transactions touched a SAP system in 2018. The number is expected to further grow in the future. [SAP]

Companies invest in SAP software because it is highly flexible and customizable and because it includes advanced capabilities that allow businesses to:

Boost their efficiency and productivity
Make better use of their time, money and resources

However, SAP implementation requires having technical expertise. It is not something that anyone can do.

So, the key reason why you should partner with a SAP consulting agency is that it has the know-how to guide you through the process and ensure every functionality is set to meet your unique needs.

This will help you avoid errors and stress as well as help you maximize your efficiency.

In addition, since SAP solutions host business-critical data, they need to be highly secured to prevent malware or any other malicious activities.

FBI’s report on Internet Crime shows that businesses lost $3.5 billion in 2019 due to cyber attacks.

In fact, it is estimated that cybercrime will cause businesses to lose $5 trillion by 2024. [Juniper Research]

Since cyber-attacks are becoming more common, both small and large businesses are at risk.

To keep your data and money safe, a SAP consulting company will help you secure your system the right way.

Question 5

How to choose the best SAP consulting agency for your business?

Accepted Answer

Take these five steps to make the search for the best SAP consulting company easier:

Step #1: Determine Your Business Needs

Before you commit to a SAP consulting company in the USA, take stock of your brand’s requirements. Ask yourself what initiatives are going well and which ones could use some assistance.

Determine if any inter-departmental work is on the horizon and understand the direction your company is growing in.

This will help you find the right partner that has the relevant experience in the features and functions you require.

Step #2: Check Their Prior Work

SAP consultant’s previous experience is a strong indicator of the work they can do for your business.

First, take the time to research their client list, expertise and previous projects autonomously. Then, ask potential consulting companies about the prior work they have done.

Pay special attention to the business objectives they’ve found solutions for that resemble yours, as well as both successful and failed projects. Don’t be totally turned off by the latter!

The best SAP consulting company will be able to share the valuable lessons they learned from unsuccessful software projects, which is a good sign of ever-growing knowledge.

Step #3: Understand Their Strategic Approach

The company you hire should work directly with you and your team to determine your business goals and formulate a strategy.

By doing so, they can help you secure the functionalities you need to improve your productivity and reach more consumers.

However, the approach they will take plays a key role in the project’s success.

In these kinds of projects, one size does not fit all. Every client is unique and the best SAP consulting companies will take the time to conduct thorough market research and provide guidance that corresponds to the unique needs of the business.

Step #4: Sign A Contract

After you have determined all objectives, deliverables, timelines and team members, strike a pricing agreement with your SAP consultant.

Make sure to note if this cost includes additional support, cybersecurity and any programs or additional fees.

Then, work with your legal team to create a comprehensive contract. This will outline all of the project specs, curb your expectations and keep your SAP consultant honest, ultimately protecting you both and fostering a positive working environment.

Step #5: Ask About Post-Lunch Support

Each SAP software project requires a different level of support. Some may include a quick update, while others entail comprehensive implementations.

Ensure you understand the expertise and support your potential partner is able to provide and willing to give for your price point.

In addition, don’t forget to ask companies how much assistance you can expect once the software has gone live.

Outline who will be responsible for updates, employee onboarding and cybersecurity maintenance. Plus, learn if they plan to place a consultant directly in your office for any length of time.

Question 6

What questions to ask SAP consulting firms before you hire one?

Accepted Answer

The search for the best SAP consulting company can be a tricky process.

However, asking the following question can help:

1. Clients

Do your own homework and research these companies' past clients to understand what kind of projects they have worked on, what type of businesses they partner with and what is their industry focus.

Then, ask them directly about client satisfaction and prior software success stories:

What clients, past or present, have you worked with?
Tell us about the project you completed for them. What was the result?
Are any of them repeat clients?
Would anyone be willing to speak with us directly regarding their professional experience working with you?

2. Process

From collaboration to strategy-building and integration, the best SAP consulting companies should have a clear, organized work process to achieve success.

Ask the questions below to determine if a consultant’s work ethic and timeline match with your brand’s expectations and outline the subsequent support you will receive:

What processes do you have in place to understand our brand and business goals?
How often can we expect meetings, updates and reports?
Who will our point of contact be?
How long do you anticipate the project will take?
How will you keep the project on track?
What methods will you use to ensure deadlines are met?

3. Team

SAP software implementations that are successful, effective and low-risk are directly correlated with the team completing the tasks.

As you are searching for potential United States SAP consulting companies, ask exactly who will be working on your project and determine if they are qualified:

Who will work on our project?
What is their expertise?
What tasks will they complete in our SAP implementation?
Have they solved similar business problems before?
Have they worked with similar brands or industries in the past?
Will they be dedicated to our project or working on other simultaneously?

4. Pricing

Because SAP consultants implement projects of various sizes and features, no two projects will cost the same.

Before you commit to a SAP consulting company, take the time to understand exactly which services you are getting and how much support you can expect for the price:

How much will the project cost?
Exactly what services and team members are we paying for?
Will we receive any maintenance support following the project?
Do you plan to place someone in our office full-time or part-time?
Should we anticipate any additional fees? If so, for what?

5. Objectives

Top SAP consulting companies work with clients to implement features aimed to reach business growth goals.

While they can’t guarantee you’ll reach campaign-specific objectives, reliable experts can outline software-specific goals such as security and functionality performance.

Speaking of that, make sure you ask:

What attainable goals will you set for this project?
How do you plan to measure success?
How will you secure our data and information?
Who is responsible should there be a data breach?

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