There’s no getting away from it: the pressure to move to S/4HANA is only increasing.
Across Europe and the US, businesses know they need to modernise. Legacy systems aren’t fit for purpose anymore, and the longer transformation is delayed, the bigger the risk becomes. But at the same time, budgets haven’t suddenly doubled and companies are looking at where they can reduce cost. Naturally, hiring strategy is one of the first places they go, which is why we’re seeing a sharp rise in offshore and nearshore models being introduced into S/4 programmes.
On paper, it makes complete sense: lower cost, scalable teams and access to global talent. But the reality is a bit more nuanced than that.
This article contains insight from Conexus Managing Director Connor Wall.
Can cheaper mean better?
Offshore hiring absolutely has its place and when it’s done well, it can be incredibly effective. But one of the biggest mistakes I see is organisations leaning too heavily into cost reduction without fully considering the impact on delivery.
Ultimately, S/4HANA programmes are more than technical upgrades. They transform businesses entirely, and this transformation requires alignment, collaboration, and trust — things that are much harder to achieve when teams are 'detached' from the business. You can have the best technical resources in the world, but if they’re not close to the stakeholders or in the room for key decisions, things can begin to slip as your workshops won't carry the same impact and decisions take longer.
Suddenly, the cost you saved upfront starts to show up elsewhere.
How important is physical presence on a large digital transformation programme?
This is the bit that’s often underestimated. In my experience, it still matters. A lot.
Not every role needs to be on-site five days a week, but when you’re dealing with senior stakeholders, complex business processes, and high-pressure delivery environments, being physically present builds a level of trust and understanding that’s hard to replicate remotely.
That’s why the most successful programmes tend to keep programme leadership, functional leads and business-facing roles closer to the business.
Where does offshore hiring work?
Offshore hiring isn’t the problem, but misusing it is. When used properly, it’s a huge advantage. It works well in areas such as:
Development and technical build
Testing and QA
Data migration
Support and BAU
In short, anywhere that benefits from structure and repeatability. Where I see programmes struggle is when offshore is stretched into areas that require deep business interaction.
What’s interesting is that most organisations are starting to employ a 'blended' model. Very few are fully onshore anymore; very few are fully offshore either. A blended model comprising onshore for leadership, nearshore for collaboration and offshore for cost efficiency provides a stable balance in which programmes tend to succeed.
Offshore can absolutely reduce cost in the short term, but if it leads to rework, delays or poor stakeholder engagement then it creates a much bigger problem down the line.
The best programmes consider delivery success alongside cost-reduction.
What does this mean for the market?
We’re already seeing the ripple effects across Europe and the US. There's more pressure than ever on hiring managers to justify cost, meaning team structures are becoming more strategic. Getting the balance wrong can impact the entire programme.
For candidates:
Strong, business-facing talent is still in high demand
If you can bridge the gap between technical delivery and stakeholder engagement, your value only increases
Being able to work across global teams is becoming a key differentiator
And despite the rise of offshore models, top-tier talent hasn’t become less important. If anything, it’s become more critical.
Final Thoughts
This isn’t about offshore vs onshore, it's about using the right model in the right way. As offshore hiring continues to reshape delivery models, its impact is being felt across every S/4 programme I speak to.
I’m interested to hear from both sides of the market:
How has offshore hiring impacted your role recently?
Are you seeing more of it in your programmes?
Has it genuinely improved delivery or created new challenges?
Where do you think the balance should sit between cost and quality?
How we can help:
We help organisations understand what their team structure needs to look like, access niche SAP, data and transformation talent across both contract and permanent markets and build teams that are aligned with where the programme is going. We go beyond go-live, we ensure businesses come out stronger, faster and better-equipped to compete.
If you're currently scaling an S/4HANA programme, let's talk.