KPMG deepens SAP alliance to drive cloud & AI shift

KPMG has expanded its collaboration with SAP after being named an SAP Global Strategic Service Partner, placing it in the top tier of SAP's services partner programme.

The agreement formalises closer work between the professional services network and the enterprise software provider on cloud and artificial intelligence projects. The partnership will focus on modular delivery and co-innovation for clients operating across multiple markets.

KPMG joined SAP's PartnerEdge programme in 2024, stepping up joint work on transformation programmes built on SAP platforms. The new designation moves KPMG into a smaller group of strategic partners SAP uses for large services engagements and broader go-to-market activity.

KPMG said the relationship centres on a "cloud-native, AI-first" approach, supported by its implementation tooling. It cited KPMG Velocity, an implementation platform used across its firms, and said the combination is designed to deliver measurable outcomes from transformation programmes.

Bill Thomas, Global Chairman and CEO of KPMG International, framed the announcement as a response to volatility and rising expectations for change programmes.

"Businesses everywhere are navigating a fast-changing environment, and that naturally makes transformation more demanding. Our strengthened alliance with SAP brings together KPMG's deep industry experience and SAP's expertise in enterprise applications and business AI to create something incredibly powerful for our clients," said Bill Thomas, Global Chairman and CEO of KPMG International.

He added: "Together, we're helping clients with their biggest transformations. And we're doing it in a way they can trust: with speed, with impact, and with a shared commitment to helping them build stronger businesses."

SAP Chief Executive Christian Klein pointed to the long-standing relationship and described the new status as a step-change in collaboration.

"SAP has collaborated with KPMG for decades. Now as a global strategic service partner, we've reached an exciting new milestone in our collaboration. With this strategic services partnership agreement, we can combine the very best of our assets to accelerate transformation and offer even more joint value to our customers," said Christian Klein, CEO of SAP.

AI governance

KPMG said its approach is anchored in a Trusted AI framework, which it described as a methodology for designing and delivering AI strategies and solutions with an emphasis on responsible use. It also cited processes for tracing and assessing AI assets across their lifecycle, along with a methodology for measuring and publishing AI transparency.

KPMG said it is applying the same approach internally, using SAP Cloud ERP across its own operations. It also said it is using SAP Business AI in areas linked to collaboration and growth, with an emphasis on data-driven decision-making.

SAP tools

KPMG highlighted its involvement with several newer SAP products and programmes. It described itself as one of the largest adopters of SAP Joule for Consultants, which provides access to SAP knowledge resources for consulting teams. The firm said the tool reduces research time and speeds project execution.

The partnership also includes Joule Studio, which SAP positions as a way to develop AI agents for enterprise operations. KPMG said the two organisations will use the environment for co-creation and pilots focused on specific use cases.

Another focus area is SAP Business Data Cloud. KPMG said it uses the product to help clients build unified data foundations aligned to strategic objectives, linking the work to improved decision-making and broader transformation programmes that embed AI within business-led change.

KPMG also said its firms have become a RISE with SAP Validated Partner. The validation signals alignment with SAP best practices and experience delivering SAP Cloud ERP programmes, and forms part of SAP's partner assurance model for cloud migrations.

Client example

KPMG and SAP cited a transformation programme at FrieslandCampina, one of the world's largest dairy companies, as an example of the work the expanded partnership is expected to cover. FrieslandCampina has been modernising core IT systems and business processes under its "Optimus" programme.

The company outlined KPMG's role in its move to SAP Cloud ERP Private, as well as related work on warehouse management and consolidation.

"The KPMG team has been instrumental in driving our transformation to SAP Cloud ERP Private as part of our 'Optimus' program. Through their pragmatic approach, supported by KPMG's proven transformation methodology and target operating model, we are now progressing confidently toward global deployment. KPMG is leveraging AI-enabled tools, Joule and other automation solutions to further increase productivity and drive the program at high quality in close collaboration with our team and SAP. As part of the Optimus program, KPMG has also enabled the technical consolidation of multiple SAP Extended Warehouse Management (SAP EWM) systems and migrating the consolidated environments into SAP S/4HANA, with the first deployment already live and the remaining waves well underway. Thanks to the KPMG team's open and transparent collaboration, strong SAP EWM capabilities and execution rigor, the foundation has been set for transparency and actionable insights-helping us unlock new value across our business and supply chain function." - Daniël Tavares Delgado, Optimus Delivery Director and Business IT Director Global Business Services, and Ivo Ogink, Optimus Transformation Director, FrieslandCampina

KPMG said the expanded relationship strengthens its ability to advise clients moving from legacy systems to cloud services and to deliver design and implementation work for complex programmes. SAP's partner ecosystem has become a focal point for large-scale cloud ERP migrations and AI-related changes in enterprise software, and the two organisations expect the strategic partnership to expand joint delivery across industries.