The brain drain of SAP professionals in the UK has seen vendors enter a war for talent and foreign firms enter the fray.

SAP – the firm, that is – has set its sights on the UK market as more financial firms look towards enterprise resource planning (ERP) for their administration and management functions – such as payroll, HR and finance.

But, according to a new report from IT think-tank Pierre Audoin Consultants, vendors – such as IBN Accenture, Axon and TCS – are now looking for a piece of the action. There’s just one problem – the skills shortage at the senior end.

As Rajeena Brar, consultant at PAC, says: “There’s an over-supply of software developers – particularly as much of this is outsourced overseas – but in the UK there’s a pressing need for process consultants and IT architects.”

What’s more, the lack of talent in the UK has been seen by Indian vendors like TCS and Wipro as an opportunity to push for business.

So, what’s behind this expertise shortfall? Brar reckons it stems from grass roots level: “The lack of investment in training has caught up. The number of IT graduates is falling, and those that are coming out lack business acumen. IT has to be aligned with business strategy, so that sort of experience is essential for these types of roles.”

Salaries are being pushed up as a result of the lack of talent. A process consultant can expect to earn between £65k and £70k now, which compares with around £60k this time last year.

The light at the end of a fairly long tunnel is that the vendors are teaming up with universities to develop the required skills.

Brunel University, for example, has launched a Masters in business systems integration in conjunction with SAP, and Sheffield Hallam University offers a similar course after joining forces with Capgemini.