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The Biggest Tech Talent Gap Can Be Found in the SAP Ecosystem

In today's job market, employers are facing a challenge in finding the right talent for tech roles that go beyond just coding. They're not just looking for people who can write code; they want individuals who can implement, integrate, and run a variety of software platforms crucial for modern businesses. 

This demand spans across diverse fields like cybersecurity, data science, and industry-specific software, transforming the idea of entry-level jobs. Employers are seeking candidates with not only the required skills but also hands-on experience in navigating the digital complexities of 21st-century workplaces. 

This shift emphasizes the importance of not just theoretical skills but practical, hands-on experience in navigating the complexities of 21st-century workplaces. The impact could include a redefinition of career pathways, a greater emphasis on continuous learning, and a more dynamic and adaptive workforce to meet the evolving demands of modern businesses. 

A recent Forbes case study explored dynamic areas like cybersecurity, data science, and the growing use of innovative software platforms such as Salesforce and Workday in different industries. Software-as-a-service companies, like Epic in finance and WellSky in healthcare, are on the rise. 

The study emphasizes the increasing need for various skills, from sales and marketing with Hubspot to customer service using Zendesk, software development on Atlassian, low-code app development with Pega, cloud computing through AWS, and the broad field of digital transformation with ServiceNow. 

Salesforce and Workday are not the most widely used software platforms; ERP systems like SAP and Oracle hold that title. One reason is their age, as SAP and Oracle date back to the 1970s. Additionally, ERP systems cover a broad range of business functions like accounting, budgeting, project management, and supply chain management. 

Many large companies adopted ERP long before Salesforce even existed. For instance, SAP serves over 425,000 clients across 180 countries, almost three times more than Salesforce. Companies using SAP have always needed certified SAP experts to manage their on-premises ERP platforms. However, there's a big change happening. 

Thanks to companies like Salesforce, businesses now prefer buying and using software differently. Instead of installing software on their own servers, SAP is moving clients to the cloud with its S/4HANA platform. Running ERP in the cloud has many benefits like scalability, features, security, and cost savings. But moving a whole ERP to the cloud is a significant task. 

With SAP's 2027 deadline approaching for moving legacy ERP systems to S/4HANA, clients must decide whether to stay on-premises or move to the cloud. The advantages of cloud adoption are increasing, and delaying the decision may lead to challenges with outdated systems. So, for many clients, migrating to S/4HANA means moving to the cloud. 

The shortage of SAP talent is affecting not only companies but also SAP partners like consultancies. Moving to S/4HANA, SAP's latest platform, may face challenges due to a skills gap. 

The CEO of the Americas SAP User Group warns about potential issues with external partners lacking the necessary skills. According to surveys, many SAP professionals feel they have not received sufficient training. While traditional education may not quickly address this gap, apprenticeships, combining training and experience, are a promising solution. 

However, these initiatives may likely come from SAP partners rather than SAP clients, who often seek perfectly qualified candidates. In the coming years, expect SAP partners to launch programs providing trained S/4HANA talent, filling the growing demand in the SAP ecosystem.