Canada Inc.’s Burgeoning Competency in SAP Consulting Business

Mandeep S. Oberoi*  April 09, 2010

I remember attending a SAP conference held in downtown Toronto during March of 2010. I was surprised to meet a considerably high number of experienced SAP Consultants who have moved to Canada from USA on immigration. There were a few consultants who had moved from Europe as well. Most of these consultants had moved due to the economic recession; change of government regulations relating to the USA’s work VISA (also known as H1B VISA) program; and unfavorable green-card process for professionals from certain countries including those from India. There has been a very large-scale movement of highly experienced IT and SAP consultants from USA into Canada. This is a great opportunity for the friendlier Canada Inc. to build its share of competency in the high revenue market that was traditionally dominated by the US corporates. Interestingly, expats constitute a high proportion of around 30 percent of America’s IT and consulting work force.

Growing Canadian Competency in SAP Consulting Business

It has to be noted that currently, the domestic consumption of SAP consulting services within Canada is estimated to be less than 10 percent of that in the USA when calculated in terms of revenue. This number also coincides with the differences in the size of the gross domestic product (GDP) and the populations between the two countries. What is different is the dis-proportionate size of the currently growing work-force of Canada’s experienced SAP consultants. Most of these consultants have up to a decade of past experience of working in the USA.

It has to be also noted that due to lack of demand within Canada, these consultants compete with the USA-based consultants for the work that has to be delivered across the border. These consultants often travel on weekly basis, while their clients pay their expenses. Though considering the poor state of economy at the moment, USA based consumers have over-capacity. Situation will change once the economy rebounds to its factual impetus.

Going forward, the USA-based SAP consultants who were already combating a growing competition from their counterparts from India; will now have to also compete with their colleagues from the neighborhood. This competition is fierce because the competitors usually have good communication skills, better training, higher competency, and past experience of delivering consulting services to the US marketplace. It’s a challenge for the SAP Resource Managers to accommodate this relatively newer but highly competent influence from the neighboring country.

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