SAP is the most widely used ERP system. There are many great opportunities for a SAP consultant. Wide use of SAP to run business by many companies leaves a bright future ahead of us in the field of SAP. Many people wonder why SAP consultants are paid higher than other IT specialists. Everyone wants to know reasons behind this market trend. There are many reasons and in this post we tried to analyze SAP salaries and understand why SAP jobs pay much.
Future Increased Returns for Companies
Companies generally sought out for a product that best cater to their needs in terms of cost savings, efficiency, productivity and process driven. SAP meets all these good benefits. Hence, companies are willing to pay higher salary/rate to the professional who can deliver the implementation for the future of their business. SAP is more integrated than its competitors, which enables companies to converge their transactional activities into one application. The complexities associated with the implementation makes it a challenging task for just any IT professional, therefore companies would hire anyone who has the knowledge at a higher price compared to other IT specialists.
Simply put, companies pay higher SAP salaries so that they can have increasing returns in the future by eliminating costs and by increased performance.
Need of Qualified Talent for critical SAP Projects
Most companies are very frugal with their money and want to pay less, but they can’t leave roles open or hire under qualified talent at the risk of a failed SAP implementation. The potential return on investment (ROI) is too critical and stock holders / board of directors are watching closely.
So the bottom line all companies generally follow is “Pay a little more, hire the right people, and have a very successful project that delivers a powerful ROI back to the business in less than 3 years!”
SAP consultants are the rock stars of the technology space. The work of an SAP consultant is pretty challenging and at the same time rewarding. The reason why it is challenging is because SAP is at the heart of the enterprise. So, you are essentially working at the fundamental business requirements of the enterprise. And you very well understand the way businesses work including Sales and Distribution, Purchasing and Inventory, and Finance which are common across any company. SAP job is rewarding as well not just in terms of money but in terms of growth in the IT department of the company.
Demand vs. Supply
SAP consultants are highly paid because SAP is a very complicated system and demand is higher than supply. SAP consultants are paid a premium for their specific SAP project experience. Career prospects and development are good since there is a demand for these skill sets and companies are willing to pay good money for the best consultants.
Full-scale SAP implementation happens in companies with very high budget versus the smaller companies (under $1B) that tend to use other ERP such as JDE, Oracle eBusiness, PeopleSoft etc. The amount of hiring not only from Fortune 1000 clients that need SAP talent, but also the amount of hiring from the Big 5 and SAP Implementation Partner market is very high.
Some Interesting Facts
A very good and vast research has been done by panayainc.com on SAP salaries worldwide, the below given are some of those real facts.
- SAP salaries trend is much higher for high revenues companies, the partners and integrators than the companies using SAP or SAP clients.
- The survey found that the education level is playing a great role in salary hike or SAP jobs.
On an average, the pay for an SAP consultant is great. For example, according to a popular job search website the average pay for an SAP consultant in the UK is between 55K and 60K. You can compare it with other professions yourself and find out more. There is still a shortage of skills in SAP especially with SAP pushing aggressively. Here is what CIO.com has to say: ”SAP Skills Shortage costs SAP’s Customers, Partners and, Ultimately, SAP AG”.
From all the reasons and facts we mentioned above, you can very well understand the demand for qualified SAP consultants and the motivation behind SAP salaries. If you do contracting, the rates and SAP salaries are almost thrice as high if you get the right project. Be it a full time or contractual position, if you work in the field of SAP, you can also enjoy the benefit of getting paid higher than any other IT specialist.