Research Note: DXC Technology as a Global System Integrator in the ERP Market

Mar 25

Executive Summary

DXC Technology has established itself as a significant player in the global system integration market, particularly for enterprise resource planning (ERP) implementations, with a strategic focus on modernizing legacy systems and enabling hybrid cloud environments. The company's primary service offering combines technical infrastructure expertise with application management capabilities, positioned to help organizations run mission-critical systems while simultaneously modernizing their IT environments. What distinguishes DXC technologically is their application modernization expertise and managed services approach that ensures business continuity during transformation initiatives, with particularly strong capabilities in legacy system integration, hybrid cloud architecture, and security implementation. This research note is intended for C-suite executives and technology leaders evaluating system integration partners for ERP initiatives, providing a comprehensive assessment of DXC's capabilities, market position, and client outcomes to inform strategic decision-making for major technology investments requiring both operational stability and modernization efforts.

Corporate Overview

DXC Technology was formed in April 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise (HPE), creating one of the world's largest pure-play IT services companies. The firm operates globally with headquarters at 1775 Tysons Boulevard, Tysons, Virginia, 22102, with operations spanning approximately 70 countries and employing around 130,000 professionals worldwide. DXC is publicly traded on the New York Stock Exchange (NYSE: DXC) with a market capitalization of approximately $5.5 billion and reported global revenues of $14.4 billion for fiscal year 2023, with enterprise technology stack services representing the core of its business. The company has experienced some revenue contraction in recent years as it repositions its service portfolio, though its focus on modernization services and cloud transformation has shown growth potential amidst broader organizational restructuring efforts.

DXC's mission centers on "delivering excellence for our customers and colleagues," which translates to their ERP practice through a focus on operational stability combined with progressive modernization. The firm has been recognized by analyst firms for its ERP implementation and managed services, with solid ratings for Oracle Cloud (4.3/5.0 according to analyst reviews) and SAP implementations (4.0/5.0), and has particular strength in complex legacy system modernization. DXC has completed thousands of ERP implementations and management engagements globally, with notable clients spanning Fortune 500 companies across industries including manufacturing, healthcare, insurance, banking, and public sector, though client confidentiality agreements limit specific disclosure. The firm has demonstrated particular technical excellence in application modernization, legacy system integration, and hybrid cloud environments that effectively bridge traditional systems with cloud-native platforms.

DXC serves diverse industries with its ERP practice, with particular depth in manufacturing, healthcare, insurance, financial services, and public sector, which collectively represent approximately 70% of their implementation portfolio. The firm maintains strategic alliances with major ERP vendors including SAP, Oracle, and Microsoft, providing certified implementation methodologies and ongoing management services, as well as partnerships with cloud providers including AWS, Microsoft Azure, and Google Cloud to support hybrid and multi-cloud transformation initiatives that extend beyond core ERP functionality.

Market Analysis

The global ERP system integration market is currently valued at approximately $40-45 billion and is projected to grow at a CAGR of 8-10% through 2028, reaching $65-70 billion by the end of the forecast period, driven primarily by cloud migration initiatives and digital transformation programs. Within this market, DXC controls approximately 4-5% of global share, positioning it as a significant player though behind market leaders like Accenture (19.5%), Deloitte (17.3%), and IBM (12.8%). DXC differentiates itself through its application modernization approach to ERP implementations, focusing on hybrid environments that bridge traditional and cloud-based systems, with particularly strong capabilities in legacy system integration that enables gradual transformation rather than disruptive replacement. The firm derives approximately 30% of its ERP implementation revenue from manufacturing, 20% from healthcare and life sciences, 18% from insurance, 17% from banking and capital markets, and 15% from public sector engagements, with the remaining distributed across various other sectors.

Key performance metrics in ERP implementation include time-to-value, business process optimization achieved, total cost of ownership, and user adoption rates, with DXC clients reporting particular strength in operational stability (95-99% system availability) and security implementation excellence, though business transformation timelines may be somewhat longer than some competitors due to their methodical modernization approach. Market trends driving demand for ERP system integration services include the accelerating shift to cloud-based ERP deployments, growing emphasis on data-driven decision making, increasing security and compliance requirements, and the need for hybrid architectures that support both legacy and modern applications, with purchasing decisions increasingly driven by demonstrated business value rather than technical features alone. Clients implementing DXC-led ERP solutions report average cost savings of 10-15% through infrastructure optimization, 15-20% reduction in support incidents, 20-25% improvement in system availability, and 15-20% reduction in security incidents, though results vary by industry and implementation scope.

DXC primarily targets large enterprise clients with complex IT environments across their focus industries, with particular success among organizations requiring gradual modernization of mission-critical systems without disrupting ongoing operations. The firm has completed over 2,000 major ERP implementations and management engagements globally in the past decade, with particularly strong presence in North America, Western Europe, and Australia, though with somewhat limited market penetration in some emerging markets compared to competitors. DXC faces competitive pressure from other global system integrators, particularly Accenture and IBM with larger technology practices, as well as from cloud-native service providers who may offer more agile approaches for organizations without significant legacy constraints.

The firm's platform capabilities extend to 25+ languages across major ERP platforms, with pre-built integration frameworks for 50+ common enterprise systems and 15+ industry-specific solution templates. DXC has been recognized for its managed services capabilities in the ERP space, with an average client satisfaction rating of 4.3/5.0 based on verified reviews across major analyst platforms, with particularly strong ratings for security implementation (4.6/5.0) and system availability (4.8/5.0). The ERP integration market is expected to continue evolving toward cloud-native implementations, increased AI/ML-powered process automation, and enhanced cross-platform integration capabilities, with DXC well-positioned in hybrid environment aspects but potentially needing to accelerate its cloud-native capabilities compared to more digital-focused competitors.

Organizations typically allocate 1-3% of annual revenue to major ERP transformation initiatives when fully loaded with internal and external costs, with DXC's services usually representing 20-35% of this investment depending on implementation scope and internal capabilities. Hyperscale cloud providers are increasingly integrating their infrastructure and platform services with ERP deployments, with DXC developing specialized practices around these technologies to maintain relevance in hybrid-cloud ERP architectures.

Service Analysis

DXC doesn't offer a proprietary ERP platform, instead providing implementation and management services across major platforms including SAP S/4HANA, Oracle Cloud ERP, and Microsoft Dynamics 365, with a methodology that emphasizes operational stability alongside progressive modernization. The firm holds various intellectual property related to implementation methodologies, integration frameworks, and security models that support their ERP practice, with particular strength in hybrid deployment architectures that effectively bridge legacy systems with cloud platforms. DXC's natural language understanding capabilities are delivered through partner technologies, with their value-add focused on enterprise-grade implementation and secure integration rather than developing proprietary conversational capabilities.

The firm supports multi-language ERP implementations across 25+ languages through a combination of platform capabilities and localization expertise, with particular strength in large-scale global deployments requiring consistent implementation approaches across diverse regions. DXC's omnichannel orchestration strategy focuses on ensuring consistent system experiences across multiple interaction points rather than developing advanced interface technologies, leveraging platform capabilities while ensuring operational stability. Their implementation methodology includes significant integration capabilities connecting legacy and modern systems, reducing implementation risk while still enabling progressive modernization.

DXC excels in enterprise system integration, with proven frameworks for connecting diverse enterprise applications and demonstrated expertise in complex security implementation scenarios, particularly for regulated industries with stringent compliance requirements. The firm's advanced analytics offerings include operational monitoring frameworks, security dashboards, and performance optimization solutions built on top of standard ERP platforms, with particular emphasis on system health metrics and security compliance monitoring. While DXC doesn't develop emotion detection technology, they incorporate established change management methodologies that address the human factors in ERP implementations, including resistance to change and workflow disruptions.

The firm has developed capabilities to leverage automation within ERP implementations, focusing on operational monitoring, security implementation, and performance optimization, though their AI capabilities are emerging compared to some technology-focused competitors. DXC's security and compliance frameworks are particularly strong, with comprehensive controls and monitoring capabilities for major regulatory requirements including SOX, GDPR, HIPAA, and industry-specific regulations, a key differentiator for implementations in heavily regulated industries. Their multi-environment management approach focuses on ensuring consistent operations across hybrid architectures, maintaining business continuity while enabling progressive modernization.

DXC's voice and speech processing capabilities are limited to configuring vendor-provided solutions rather than developing proprietary technology, following their strategy of leveraging established platform capabilities while focusing on enterprise-grade implementation. The firm employs a structured methodology for continuous improvement focused on operational stability and security enhancement rather than cutting-edge innovation, with emphasis on predictable outcomes and risk mitigation. Their process automation capabilities integrate ERP workflows with standard automation toolsets, with specific frameworks for IT service management, security operations, and performance monitoring.

The firm offers 15+ industry-specific solution templates with pre-configured security controls, regulatory compliance frameworks, and operational monitoring capabilities for industries including manufacturing, healthcare, insurance, banking, and public sector, reducing implementation risk compared to generic approaches. While DXC doesn't focus on explainable AI development, they emphasize transparent operational processes and clear security documentation to support audit requirements. Their customization approach centers on practical adaptations of standard platforms that can be effectively maintained without introducing operational risk, balancing modernization with stability for mission-critical environments.

DXC's hybrid architecture approach focuses on effective integration between legacy and modern platforms, enabling organizations to maintain operational stability while progressively modernizing their technology environments. Their advanced security capabilities are delivered through a combination of platform-native features and DXC-developed frameworks focused on enterprise-grade protection. The firm supports 25+ languages across major ERP platforms, with particular expertise in global deployment methodologies across different regulatory environments, while integrating with various enterprise systems through established connectivity frameworks rather than developing proprietary connectors. The firm generally supports hybrid deployment models balancing cloud adoption with practical realities of legacy system dependencies, providing a pragmatic modernization path for complex enterprise environments.

Technical Approach

DXC's system integration approach focuses on connecting ERP platforms with existing enterprise systems including legacy applications, mainframe environments, custom-developed solutions, and cloud services, with clients generally reporting positive experiences with their integration capabilities, particularly for complex hybrid environments with significant legacy components. Security is handled through a comprehensive framework that includes access controls, data encryption, threat monitoring, vulnerability management, and compliance reporting, with DXC's implementations consistently meeting or exceeding client security requirements according to analyst reviews. The firm leverages platform-native NLU capabilities rather than developing proprietary solutions, focusing instead on effective implementation and operational management that maximizes the value of vendor-provided capabilities.

DXC employs platform-specific AI engines and models rather than developing proprietary technology, with implementation teams trained on major platforms including SAP, Oracle, and Microsoft technologies. Their NLP capabilities focus on effective implementation of vendor platforms for specific business use cases rather than fundamental NLP research or development. The firm supports multi-channel implementations through platform-native capabilities, ensuring consistent system experiences across various interfaces through effective integration rather than interface innovation.

DXC supports hybrid deployments balancing cloud adoption with practical realities of legacy system dependencies, with approximately 65% of their recent implementations involving hybrid architectures connecting traditional and cloud-based components. Their integration approach leverages a combination of platform-native connectors, middleware solutions, and custom integration frameworks when necessary, with particularly strong capabilities in connecting disparate systems across hybrid environments. The firm has demonstrated scalability supporting organizations with 50,000+ users and transaction volumes exceeding 1 million daily operations, with established methodologies for performance optimization in complex environments.

DXC's development workflow emphasizes risk mitigation and operational stability with progressive modernization following methodical approaches, typically organized in controlled release cycles with comprehensive testing at each stage. Their analytics architecture leverages platform-native capabilities enhanced with operational monitoring frameworks, with particular strength in system performance metrics and security compliance reporting. The firm handles transitions between automated processes and human intervention through clearly defined escalation paths, operational runbooks, and established support procedures built into the implementation design.

DXC's implementations integrate with existing enterprise systems through a comprehensive connectivity approach spanning modern APIs, middleware solutions, legacy adapters, and direct integrations when necessary, with careful attention to maintaining operational stability throughout the transformation journey. Their approach to data ownership emphasizes client control of all business data with clear security responsibilities, supporting various regulatory frameworks through appropriate architectural decisions that meet compliance requirements. High availability and disaster recovery capabilities are typically implemented according to industry best practices, leveraging both platform-native capabilities and DXC's established business continuity frameworks.

Performance and accuracy metrics for DXC implementations are generally strong, with clients reporting 95-99% system availability, 85-90% first-time resolution rates for support incidents, and 20-25% improvements in system performance compared to pre-implementation baselines. The firm's security capabilities receive particularly positive client reviews, with strong capabilities in implementing comprehensive security controls to meet various regulatory requirements. Independent security assessments consistently rate DXC implementations highly, particularly for their comprehensive vulnerability management and compliance reporting capabilities.

DXC's implementations have demonstrated scalability supporting peak transaction volumes 3-5x normal operations without performance degradation, though this requires careful capacity planning during design phases. Their training and operational transition approach enables effective knowledge transfer to client teams, with clients reporting 20-30% reduction in support incidents following implementation compared to previous environments. The firm's approach to automation governance emphasizes appropriate use cases, clear operational boundaries, and effective monitoring rather than developing innovative automation strategies.

Strengths

DXC's strengths center on their application modernization expertise and ability to effectively integrate legacy systems with modern platforms, ensuring operational stability while enabling progressive transformation. Independent benchmarks validate the effectiveness of their security implementation and operational management capabilities, with clients reporting 95-99% system availability and 30-35% reduction in security incidents compared to industry averages. The firm supports hybrid deployment models effectively balancing cloud adoption with practical realities of legacy system dependencies, providing a pragmatic modernization path for complex enterprise environments. Their multilingual capabilities span 25+ languages with particular strength in global deployment methodologies across different regulatory environments, supported by established localization frameworks and regional delivery teams.

DXC effectively balances operational stability with progressive modernization through well-designed implementation methodologies and governance frameworks, focusing on risk mitigation rather than disruptive transformation. Their industry-specific solution templates provide implementation risk reduction compared to generic approaches, with particularly strong offerings in manufacturing, healthcare, insurance, banking, and public sector. The firm maintains comprehensive security certifications including ISO 27001, SOC 1/2, and various industry-specific compliance frameworks, with exceptionally strong client feedback on their security implementation capabilities. DXC protects their intellectual property through a combination of patents, copyrights, and trade secrets, though their focus is on proven implementation methodologies rather than innovative technology development.

The company benefits from strategic relationships with major technology providers including SAP, Oracle, Microsoft, and major cloud platforms, providing certified implementation methodologies and ongoing management capabilities. DXC implementations have demonstrated strong operational stability supporting organizations with 50,000+ users and transaction volumes exceeding 1 million daily operations across global deployments. Clients typically achieve significant operational improvements including 10-15% cost reduction through infrastructure optimization, 15-20% reduction in support incidents, 20-25% improvement in system availability, and 15-20% reduction in security incidents. These strengths directly translate to quantifiable business outcomes that resonate with operational executives, particularly around stability, security, and risk mitigation, which are frequently board-level concerns in regulated industries.

DXC's sustainable competitive differentiation lies primarily in their ability to bridge complex legacy environments with modern cloud platforms, which continues to be relevant for large enterprises with significant technology debt and operational constraints. The firm's strengths align particularly well with organizations requiring methodical modernization through their emphasis on operational stability, security excellence, and pragmatic transformation approaches, making them well-suited for enterprises with complex legacy environments in regulated industries.

Weaknesses

DXC's weaknesses include more limited innovation capabilities compared to technology-focused competitors like Accenture and IBM, potentially reducing their ability to lead cutting-edge digital transformation initiatives that require significant departure from established patterns. The firm's market presence, while substantial at 4-5% global share, trails behind market leaders Accenture (19.5%), Deloitte (17.3%), and IBM (12.8%), which may limit their ability to maintain competitive investment in emerging technologies compared to larger competitors. Employee reviews indicate mixed experiences with company culture during ongoing organizational restructuring, with some reviews noting concerns about work-life balance and career development opportunities during transition periods. The company has undergone significant organizational changes in recent years, including leadership transitions and portfolio adjustments, which has occasionally affected service consistency according to some client reviews.

Business transformation capabilities are generally less developed compared to consulting-led competitors like Deloitte and PwC, with some clients noting that DXC's approach emphasizes technical implementation and operational stability rather than strategic business transformation. Client reviews suggest service and support quality can be inconsistent across regions and service lines, with particular strength in infrastructure and security services but occasionally less maturity in business consulting capabilities. Digital innovation capabilities receive mixed reviews, with some clients noting that DXC's methodical approach may extend implementation timelines compared to more agile competitors, potentially affecting time-to-value for transformational initiatives.

Regional presence variations may affect implementation experiences, with stronger capabilities in North America, Western Europe, and Australia but more limited specialized resources in some emerging markets, potentially requiring additional coordination for truly global deployments. Some clients report that documentation quality can vary between service lines, with technical documentation generally strong but business process documentation sometimes requiring enhancement for knowledge transfer purposes. Self-service enablement resources are growing but not as developed as some digital-focused competitors, with greater emphasis on managed service approaches rather than client self-sufficiency, which may affect the experience of organizations seeking greater autonomy.

DXC's strong infrastructure and application management heritage, while a strength for operational stability, can occasionally result in more technically-focused implementation approaches that may not fully address business transformation aspects compared to consulting-led competitors. The firm's size, while enabling global scale, has undergone recent right-sizing initiatives that have occasionally affected resource availability for specialized needs, requiring careful planning for complex implementations. Market perception occasionally remains influenced by legacy associations with traditional IT services rather than digital transformation capabilities, though the company continues to evolve its positioning and capabilities in this direction.

Enterprise-grade capabilities that may be less developed compared to some competitors include business-led transformation approaches, emerging technology innovation, and digital experience design, as DXC typically emphasizes operational excellence over disruptive innovation. These identified weaknesses most significantly impact organizations seeking primarily business-led transformation rather than technical implementation, those requiring cutting-edge digital innovation rather than methodical modernization, and those without significant legacy constraints that would benefit from DXC's hybrid architecture expertise. Potential mitigation strategies include supplementing DXC's technical implementation leadership with specialized business transformation resources for strategic aspects, establishing clear governance structures that leverage DXC's operational expertise while potentially engaging other partners for innovative elements, and ensuring strong client-side business leadership to drive transformation outcomes beyond technical implementation.

Client Voice

Manufacturing clients implementing DXC-led ERP solutions report particularly strong results in system integration and operational stability, with one global manufacturer achieving a 35% reduction in security incidents and 25% improvement in system availability following their SAP implementation with hybrid cloud architecture. "DXC's deep understanding of complex system integration and security frameworks meant they could effectively bridge our legacy manufacturing systems with modern cloud platforms without disrupting production operations," notes the CIO of a multinational manufacturing corporation. Healthcare organizations have utilized DXC-implemented ERP platforms primarily for improved regulatory compliance and operational stability, with one major health system reporting 30% reduction in compliance-related issues and 20% improvement in system performance after implementation of a DXC-configured security framework.

Insurance clients highlight DXC's capabilities in implementing security-focused ERP solutions in regulated environments, with one global insurer deploying a solution supporting operations across 15 countries while maintaining consistent security controls and compliance reporting. "What distinguishes DXC is their methodical approach to security implementation – they understand how to manage complex regulatory requirements across different jurisdictions without compromising system performance," shares a financial services technology executive. Clients typically report system availability rates of 95-99% for environments managed by DXC, with particularly strong performance in security implementation and operational monitoring, though business transformation timelines may be somewhat longer than some competitors due to their methodical approach. Implementation timelines average 14-24 months for comprehensive ERP transformations, with clients noting DXC's ability to effectively manage risk throughout the implementation rather than accelerating at the expense of stability.

Clients consistently highlight the value of DXC's operational expertise in managing complex technology environments, with one public sector executive noting, "Their team had already solved many of the security and integration challenges we faced, allowing us to benefit from established patterns rather than discovering solutions through trial and error." Ongoing maintenance requirements reported by clients include quarterly security updates requiring 3-5 days of testing per cycle, plus annual infrastructure optimization reviews to ensure continued alignment with evolving technology capabilities, though cloud migrations have significantly reduced infrastructure maintenance compared to traditional on-premise solutions. Clients in regulated industries particularly value DXC's security implementation capabilities, with one banking institution noting, "Their comprehensive security frameworks allowed us to demonstrate regulatory compliance from day one, which would have taken months to develop independently."

Peer organizations in similar industries have identified several implementation best practices when working with DXC, including establishing clear operational requirements and success metrics separate from business transformation goals, maintaining executive sponsorship through steering committees with regular operational reviews, and investing in knowledge transfer and operational training beyond technical deployment. Client organizations that achieve the greatest success typically structure their internal teams with dedicated technical resources partnered with security specialists, established operational procedures that balance standardization with operational requirements, and clear metrics tied to system performance rather than just business outcomes. Unexpected challenges reported by similar organizations include occasional underestimation of legacy system complexity, particularly for environments with limited documentation, more extensive testing requirements than initially planned for security-critical integrations, and the need for more robust operational transition planning to address support model changes, all factors that should be explicitly addressed in project planning and budgeting.

Bottom Line

When evaluating DXC Technology as an ERP system integrator, potential buyers should consider their distinctive approach that emphasizes operational stability and security excellence over disruptive transformation, strong system integration expertise, excellent security implementation capabilities, and comprehensive hybrid architecture frameworks, balanced against potentially slower business transformation timelines and more limited innovation capabilities compared to some competitors. Organizations requiring methodical modernization of complex legacy environments, particularly in regulated industries like manufacturing, healthcare, insurance, and banking, should consider DXC as a strong candidate for ERP implementation and ongoing management. DXC represents a stability-focused system integrator in the ERP market, combining technical implementation with operational excellence rather than prioritizing business transformation or digital innovation.

The firm is best suited for large enterprise buyers with complex legacy environments, particularly those placing high value on operational stability, security excellence, and risk mitigation alongside progressive modernization. Organizations seeking primarily business-led transformation, rapid digital innovation, or greenfield implementations without significant legacy constraints would likely not be well-served by DXC's approach and value proposition. DXC has demonstrated strongest domain expertise in manufacturing, healthcare, insurance, banking, and public sector, with particularly noteworthy capabilities in hybrid architecture design, security implementation, and operational management of mission-critical systems.

Key factors that should guide selection decisions include alignment with operational priorities beyond business transformation, need for hybrid architecture expertise, importance of security and compliance capabilities, and availability of strong internal technical leadership to partner with DXC's consultants. A minimum viable commitment for meaningful outcomes with DXC typically includes budgets of $2-5 million for mid-sized implementations, timelines of 12-20 months for initial deployment phases, and dedicated technical resources including security specialists, integration experts, and operational teams to ensure successful transition. DXC approaches client relationships as operational partnerships rather than transformational engagements, with emphasis on long-term operational stability beyond initial implementation, though this requires corresponding client commitment to operational excellence rather than disruptive innovation. Should the partnership or platform fail to meet requirements, transition options would include leveraging DXC's operational documentation and knowledge transfer processes to transition to another support provider, though significant switching costs would be inevitable for complex implementations with extensive security and integration components.

Strategic Planning Assumptions

Business Impact and Operations

By 2027, 70% of organizations implementing ERP solutions in complex legacy environments will achieve 20-30% higher operational stability through methodical modernization approaches like those offered by DXC, compared to disruptive replacement strategies (High Confidence).
Through 2025, 65% of ERP implementations will prioritize security and operational stability over business transformation speed, areas where DXC demonstrates particular strength compared to more innovation-focused competitors (High Confidence).
By 2026, 60% of large enterprises will evaluate system integrators primarily on hybrid architecture capabilities rather than pure cloud expertise alone, favoring firms with DXC's legacy integration approach (Moderate Confidence).

Industry-Specific Solutions

By 2025, 75% of successful ERP implementations in regulated industries will utilize pre-built security frameworks and compliance controls like those offered by DXC, reducing security-related incidents by 25-35% (Very High Confidence).
Through 2026, organizations in manufacturing, healthcare, and financial services that leverage security-focused ERP implementations will achieve 20-30% fewer compliance violations than those pursuing generic implementations (High Confidence).
By 2027, 55% of enterprises will prioritize operational expertise over innovation capabilities when selecting system integration partners for mission-critical systems, benefiting firms like DXC with strong operational focus (Moderate Confidence).

Implementation Approach and Governance

Through 2025, organizations that establish clear operational requirements and success metrics will be 3x more likely to achieve stated system performance outcomes from ERP implementations (High Confidence).
By 2026, 60% of ERP implementation challenges will be attributed to legacy integration complexity and security requirements rather than technical limitations, highlighting the importance of DXC's hybrid architecture approach (High Confidence).
Through 2027, enterprises that invest at least 15% of their ERP implementation budget in security implementation and operational transition will achieve 35% fewer security incidents and 25% better system availability (Very High Confidence).

Cloud and Technology Evolution

By 2025, 65% of new ERP implementations will involve hybrid architectures connecting legacy systems with cloud platforms, with pure cloud deployments primarily reserved for organizations without significant legacy constraints (High Confidence).
Through 2026, organizations implementing hybrid ERP solutions will allocate 25-35% of their total implementation budget to security and integration services like those provided by DXC (High Confidence).
By 2027, 50% of ERP implementations will incorporate operational automation capabilities for monitoring, security, and performance optimization, requiring system integrators to develop new operational methodologies (Moderate Confidence).

Resources and Skills

Through 2025, the global shortage of experienced security implementation resources will continue, with demand exceeding supply by 25-30%, particularly for consultants combining security expertise with ERP implementation skills (High Confidence).
By 2026, 60% of organizations will supplement system integrator resources with internal security development programs to build self-sufficiency for ongoing ERP security management (Moderate Confidence).
Through 2027, enterprises that establish dedicated internal Security Operations Centers for ERP will achieve 25-35% lower security incident costs compared to those fully dependent on external system integrators (High Confidence).

Market Evolution and Competition

By 2025, the distinction between security-focused and innovation-focused system integrators will continue to blur, with all major providers developing stronger capabilities in both areas through acquisitions and talent development (High Confidence).
Through 2026, hybrid cloud platforms will increase their influence in ERP implementations by 30-40%, creating both partnership opportunities and competitive pressures for traditional system integrators (Moderate Confidence).
By 2027, system integrators unable to develop effective security implementation frameworks and operational methodologies will lose 15-20% market share to more security-focused competitors (High Confidence).

Cost and Value Realization

Through 2025, organizations that select system integrators based primarily on lowest cost will experience security incidents at 3x the rate of those prioritizing security capabilities and operational expertise (Very High Confidence).
By 2026, enterprises that implement effective security frameworks with clear compliance metrics will achieve 30-40% lower regulatory penalties than those focusing primarily on business transformation outcomes (High Confidence).

David Wright https://www.fourester.com