This report aims to analyze the economic impact of SAP Turkey, which has been offering solutions for the digitalization needs of enterprises in Turkey for more than 20 years. The report has been prepared by Policy Analytics Lab (PAL). The methodology comprises data analysis of both publicly available and SAP data, in-depth interviews with stakeholders (SAP Turkey’s departments, SAP business partners, and SAP users), as well as expert surveys (SAP business partner survey and SAP enterprise user survey). The analysis focuses on the growth and productivity impact of SAP on enterprises and evaluates SAP’s contributions to the software ecosystem in Turkey through tracing its impact on ICT employment and exports.
To assess the impact of SAP transformation on enterprise performance, we formed two separate enterprise groups (experimental and control), with their performance compared across periods of 3, 5, and 7 years. The experimental group includes enterprises that have undergone SAP transformation. This group consists of enterprises that began using the SAP’s Enterprise Resource Planning (ERP) solutions within the time frame in which they were included in the “Turkey’s Top Industrial Enterprises” (ICI-1000) list. This list is published annually by the Istanbul Chamber of Industry. The experimental group enterprises are chosen from those that remained on the ICI-1000 list for 7 consecutive years following their SAP-ERP implementation, sharing their major financial data such as revenues, value added and employment. By contrast, the control group includes enterprises that are similar to those in the experimental group but that do not use SAP. The control group includes enterprises that also appeared on the list for 7 consecutive years and had a value added per employee most similar to each enterprise in the experimental group for the same year (the year of ERP implementation)
The total productivity gains achieved by SAP Türkiye customers using ERP solutions were US$25 billion in the 2011-2021 period. With the digitalization and widespread of cloud computing, the total productivity gains of SAP Türkiye customers will nearly triple in the next 10 years, reaching US$74.3 billion.
Source: Value Lifecycle Manager (VLM), CBRT Sectoral Company Accounts Statistics, PAL calculations.
Multiplier Effect on Employment
For each employee in SAP Türkiye, 52 SAP consultants are employed in the ecosystem consisting of SAP partners and SAP customers.
Significant contributions to IT sector employment in Türkiye Employment in the SAP ecosystem corresponds to 9% of Türkiye’s IT sector total employment.
Share of Exports in SAP Partners’ Revenue SAP partners derive approximately 11% of their total revenue from exports originating SAP solutions
While the companies that started using SAP ERP moved their average rank up 56 places in the ICI-1000 list in the 7-year period, there was a decline in the average rank of companies that were not SAP customers in the same period.
For Details Pls see the Attached reports below.
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We are grateful for PAL consulting for compiling the report for SAP Turkiye.