Pragmatic SAP S/4HANA Pathways for ANZ Enterprises Before 2027

Only 34% of SAP ECC customers have completed their migration to SAP S/4HANA, according to SAPinsider’s ERP Migration and Transformation 2026 benchmark — leaving the majority facing a 2027 mainstream maintenance deadline with their transition unfinished.

The deadline is universal, but it lands harder in Australia and New Zealand (ANZ), where local conditions surrounding SAP transformation differ from Europe and North America.

ANZ enterprises approach the deadline with a shallower talent pool, a narrower partner ecosystem, and regulatory expectations that can shape hosting decisions. A pragmatic approach to those conditions may reduce the risk of an expensive compressed program

In a recent article, Capgemini SAP expert David Lowson frames the next 18 months as a window to choose pragmatic pathways for the region.

ANZ Conditions Reshape SAP Transformation Math

According to Lowson, the SAP skills market in ANZ is smaller and more competitive than the comparable pool in Europe or North America. Local SAP consultants with SAP S/4HANA experience are scarce, and demand is climbing as the deadline approaches.

The partner ecosystem is also narrow. Fewer system integrators carry deep SAP S/4HANA delivery capacity locally, which forces many programs to lean on global delivery models stitched into ANZ-based engagement teams. That blend can affect program design from the outset instead of emerging as a late-stage staffing fix.

Data sovereignty shapes SAP architecture decisions, too. Meanwhile, New Zealand’s Privacy Act 2020 introduces its own obligations, so treating Australia and New Zealand as a single homogeneous market can obscure country-specific requirements.

Clean Core and Selective Cloud Anchor the Playbook

Clean core means keeping the SAP S/4HANA digital core free of custom code by moving extensions outside it. The intent is to reduce the risk that future SAP upgrades will disrupt bespoke logic, which can lower technical debt.

SAP Business Technology Platform (SAP BTP) can provide a side-by-side extensibility layer where custom extensions live. SAP BTP is a platform for application development, automation, integration, data and analytics, and AI. For ANZ enterprises, that separation can make greenfield and brownfield trade-offs easier to manage, because customization no longer has to dictate the migration approach.

SAP offers RISE with SAP and GROW with SAP as two commercial pathways into the cloud SAP S/4HANA estate.

Lowson notes that RISE with SAP suits larger enterprises moving complex ECC landscapes, while GROW with SAP targets mid-market organizations adopting a clean, standardized cloud ERP. Selective adoption of either, paired with country-specific hosting, can align the commercial model with residency expectations in Australia and New Zealand.

Sequencing the migration around business priorities offers another route. A phased approach can surface measurable wins earlier and spread delivery risk across multiple budget cycles. The brownfield, greenfield, and selective routes each carry different cost and disruption profiles, and the right choice depends on the state of the ECC environment.

AI Delivery and Local Capability Offset Capacity Limits

Enterprises that decide late will compete for the same partners, architects, and delivery slots at the moment supply is tightest. Cost inflation and slipped go-live dates tend to follow that pattern in ERP migration cycles.

Delivery accelerators using AI are beginning to reshape how SAP S/4HANA programs get built. Generative AI tooling can reduce effort in code remediation, data conversion, and testing tasks that previously consumed a large share of consultant hours.

In ANZ, where the local skills base is thin, every hour an accelerator absorbs is an hour a scarce consultant does not have to bill.

Capgemini’s acquisition of Acclimation, an Australian SAP services specialist, is one example of local capability investment. Capgemini said the acquisition aimed to strengthen its SAP capabilities in Australia.

What This Means for SAPinsiders

• Partner capacity tightens across the ANZ SAP market. Migration resource demand leaves fewer qualified SAP delivery resources available. Leading ANZ enterprises are locking in partner commitments during 2026 planning cycles.
• Data residency reshapes ERP cloud decisions in ANZ. Australian and New Zealand regulatory expectations push more workloads toward public cloud regions hosted within national boundaries. Comparable organizations are evaluating Rise with SAP and Grow with SAP against country-specific hosting before finalizing commercial terms.
• AI-accelerated delivery moves into mainstream SAP programs. Generative AI is reducing manual effort across SAP S/4HANA migration tasks. Established practice now calls for partner selection criteria that weigh AI accelerators alongside traditional delivery.