SAP channel breathes sigh as projects return

UK SAP consulting and systems integration market predicted to show growth again in 2011

SAP happy: Postponed projects are set to resurface in second half of 2010, according to analyst

The embattled SAP channel has received a lift from figures suggesting the SAP project market will return to growth next year.

According to research house Pierre Audoin Consultants (PAC), the UK SAP consulting and systems integration market will grow 3.4 per cent in 2011 after declining 0.6 per cent this year.

SAP’s BusinessObjects business intelligence brand, is set to be one hot spot, as firms seek to improve their management of customer data, according to the analyst.

“Market conditions remain challenging, but some projects that have been put on hold in the last 12 to 18 months will be kick started in the second half of this year,” it stated.

SAP application management could be another fertile area for partners and is set to grow 6.2 per cent in 2010. PAC flagged up GlaxoSmithKline and Northern Foods as two companies that have recently signed SAP application management deals with SAP services partners.

PAC said the majority of SAP’s growth is coming from the upper end of the SMB sector, but that the vendor continues to struggle to make headway against Sage among smaller firms.

SAP’s recent results revealed the Germany-based goliath achieved 16 per cent sales growth in its fiscal second quarter.