Wipro ringfences its SAP consulting prowess with Rizing’s acquisition

The Situation: Though enterprises prefer to get best-in-breed services from different consulting firms or services providers for their SAP consulting, implementation, and management services, few can afford such best-in-breed services from multiple vendors.

Why does this acquisition matter?

HFS’s recent SAP S/4HANA Top 10 study revealed that 70%­–75% of enterprises avail of SAP services from a single vendor. We also learned consulting capabilities are critical criteria when enterprises select a services provider for innovating business processes and enhancing visibility and user experience as part of their SAP transformation. Clients require a capable consulting partner to engage to stay innovative, agile, and competitive in the market. Recently, Wipro announced its intent to acquire SAP consulting firm Rizing Intermediate Holding, Inc (Rizing) to meet those market requirements.

Wipro further strengthens its SAP services portfolio with Rizing

Wipro’s move to expand its SAP consulting capabilities and further bolster industry expertise through Rizing’s acquisition appeals to those aiming to initiate their complex SAP transformations. Since July 2020, under new leadership, Wipro has aggressively grown its portfolio through inorganic bets. Wipro focuses on strengthening its consulting portfolio across practices, including banking and financial services, communication services providers, and cyber security spaces. Interestingly, the firm made two acquisitions for its ERP consulting practice with LeanSwift and Rizing. Wipro expects the acquisitions will enhance its SAP consulting capabilities, SAP Cloud practice, and Wipro FullStride Cloud Services.

Rizing brings strong SAP consulting capabilities in consumer industries, enterprise asset management, and human experience management. Wipro has strong expertise and presence in manufacturing, oil and gas, utilities, and retail and consumer goods industries. Thus, the acquisition provides a good strategic fit and should create synergies. An example of Wipro’s SAP S/4HANA capabilities is the implementation for Sydney Water, one of its largest clients in the utility sector. Additionally, it recently won a couple of major contracts (with a leading wholesale company and a leading US-based cosmetic maker) with a deal value of more than $500 million each and the scope to unlock the value of digitalization through redefining their SAP landscape and maintaining their SAP transformation journey. Wipro is already delivering large SAP transformation projects through new acquisitions, further expanding its SAP services capabilities with existing and potential accounts.

The Rizing acquisition brings positive synergies in capabilities, talent, and market presence

Rizing compliments Wipro’s existing SAP services offerings with its consulting capabilities and domain expertise while cementing Wipro’s competitive position in the market, largely driven by customer demand. In addition to Wipro’s 14,000 SAP consultants, it adds another 1,300 Rizing consultants in 16 countries across North America, Europe, Asia, and Australia.

We learned through HFS SAP S/4HANA Top 10 study that services providers primarily focus on larger clients (organizations with revenue greater than $10 billion). Small and medium enterprises are largely served by mid-tier services providers. With Rizing, mid-market companies could also access Wipro’s SAP capabilities and its 60+ SAP solutions and accelerators, 10+ pre-configured industry solutions, and design thinking capabilities. We expect Wipro to eventually address the mid-market more.

The Bottom Line: Enterprises looking for an end-to-end SAP transformation partner with strong consulting and industry capabilities have an additional option with Wipro

Wipro is working hard to meet the customers’ demand by bringing critical capabilities together to provide SAP transformation and deliver business outcomes around simplification, innovative business processes, user experience, resilience, agility, and sustained solutions. Wipro is trying to position itself as an SAP transformational partner with its consulting, industry capabilities, and experiences. With Rizing in its portfolio, Wipro boosted its competitive position and can provide support across all organizations, including large and mid-market companies, in their SAP transformational journey. Clients aiming to transform their SAP landscape and looking for the right partner with the consulting capabilities and industry expertise with scale may have an option to engage with Wipro.