--- title: 10 Steps to Manage SAP Project Sub-Contractor Risk description: Learn to manage subcontractors in a SAP Project environment using risk registers and advanced risk management techniques. image: https://www.sapbwconsulting.com/hs-fs/file-16539164-png/images/balance_risk_reward_400_clr_8225.png --- ![Risk Management](https://www.sapbwconsulting.com/hs-fs/file-16539164-png/images/balance_risk_reward_400_clr_8225.png) # 10 Steps to Manage SAP Project Sub-Contractor Risk Table of Contents ## SAP Sub-Contractor Risk Management Ever been the [Project Manager](https://www.sapbwconsulting.com/blog/how-to-use-a-project-charter-to-start-a-project) on a SAP project that didn’t involve [sub-contractors](https://www.sapbwconsulting.com/time-sheet-management-1099-payments-for-contractors)?  Me neither.   In fact, on many of my [SAP projects](https://www.sapbwconsulting.com/blog/10-key-infrastructure-tips-for-sap-implementation-projects), I have had [multiple sub-contractors](https://www.sapbwconsulting.com/blog/inbound-marketing/field-report-from-a-marketing-project-manager) responsible for varying degrees of deliverables, from complete delivery of sub-elements of the project to generalized support.  These set-ups can work well, but they do present [risk](https://www.sapbwconsulting.com/enterprise-services/sap-industry-solutions/sap-project-management) which must be recognized, recorded on the [**Risk Register**](https://www.sapbwconsulting.com/blog/sap-bw-tutorial-best-practice-on-project-management-risk-register), and then properly managed.  I have found that the [risk profiles](https://www.sapbwconsulting.com/blog/12-risk-management-considerations-to-measure-wricef-a) tend to evolve during the lifecycle of a SAP engagement, which extends well to before the [SAP project implementation](https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk) starts to well after the Go-Live.  What does this mean exactly.    ## Virtual Account Teams Present Challenges The first major [risk](https://www.sapbwconsulting.com/sap-sem-cpm-risk-register-design-template) you encounter, and this is especially true during Net New Name Customer sales cycles, is the **Virtual Account Team or VAT**.  It is very normal for SAP to be part of a large, extended VAT, which eventually becomes the delivery team, which they may or may not be the leader of.    ## It May Require Multiple VATs to Win a Deal   I have seen as many as 10 different VATs assembled, all of which included SAP, and all of which were bidding using various strategies.  This information should be reflected in the [CRM system](https://www.sapbwconsulting.com/blog/inbound-marketing/3-ways-to-implement-crm-marketing).  But once the deal is won, typically only one of the VAT teams will be engaged for the implementation.  From a sales [project management](https://www.sapbwconsulting.com/blog/how-to-determine-your-fully-loaded-cost-rate) standpoint, this means you probably lose visibility into each of the assembled VAT bid teams once the deal is awarded.  When you are the VAT team lead (Project Manager), you have the constant [risk](https://www.sapbwconsulting.com/enterprise-services/sap-industry-solutions/sap-project-management) that your [sub-contractors](https://www.sapbwconsulting.com/blog/1099-contractor-payments) will not deliver a [winning proposal](https://www.sapbwconsulting.com/blog/sap-grants-management). ![risk versus reward](https://www.sapbwconsulting.com/hs-fs/file-16539164-png/images/balance_risk_reward_400_clr_8225.png?width=240&height=240&name=balance_risk_reward_400_clr_8225.png) **You will have to balance the Risk versus Reward of a complex Delivery Team Setup**   Once the contract is awarded, a complex deal may involve **many [partners](https://www.sapbwconsulting.com/sap-partnership-advisory-services), aka, [sub-contractors](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-nail-sap-partnership-management);** you now have a **new set of risks** to manage and measure.  Those risks fall into the following categories: ## Off-Shore Delivery Models Add Major Risk To Your Project That last issue is a major sub-contractor risk management factor that is little understood.  It has huge implications on the work environment.  All of these sub-contractor risk management issues should be surfaced, analyzed and recorded in your **High Level Risk Register** and appropriate actions taken.  You might want to use our '**10 Step Guide to Sub-Contractor Risk Management'** to help you with this issue.   [![Download Subcontractor Risk Management Guide](https://no-cache.hubspot.com/cta/default/118735/064575e9-ff46-4d4f-b1ea-41898fc14c18.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/064575e9-ff46-4d4f-b1ea-41898fc14c18) Thanks   People Who Read This Also Read: - What are 2 [Primary Focus](https://www.sapbwconsulting.com/blog/what-are-2-primary-focus-areas-for-sap-airline-customers) Areas for SAP Airline Customers? - 10 Advanced SAP BW [Project Estimation](https://www.sapbwconsulting.com/blog/10-advanced-sap-bw-project-estimation-techniques) Techniques [Online Tool] - 10 [Critical Chain](https://www.sapbwconsulting.com/blog/10-critical-chain-project-manager-tips) Project Manager Tips - Top 10 Guidelines to [Choosing a SAP](https://www.sapbwconsulting.com/blog/top-10-guidelines-to-choosing-a-sap-partner) Service Partner - Learn What is [Catch Weight Management](https://www.sapbwconsulting.com/blog/learn-what-is-catch-weight-management) - 14 Remote SAP [Consulting Mistakes](https://www.sapbwconsulting.com/blog/14-sap-remote-consulting-mistakes-you-don-t-know-your-making) You Don't Know You're Making - 8 Secrets to SAP Enabled [Spend Performance](https://www.sapbwconsulting.com/blog/8-secrets-to-sap-enabled-spend-performance-management) Management - Learn [What Tools](https://www.sapbwconsulting.com/blog/learn-what-tools-to-use-to-investigate-is-mill-functionality) To Use To Investigate IS-Mill Functionality - Leverage SAP BW to Increase [Supply Chain Inventory](https://www.sapbwconsulting.com/blog/leverage-sap-bw-to-increase-supply-chain-inventory-accuracy) Accuracy - BusinessObjects [Explorer](https://www.sapbwconsulting.com/blog/businessobjects-explorer-best-practices) Best Practices   **About SAP BW Consulting, Inc.**   SAP BW Consulting, Inc. provides comprehensive [SAP solutions](https://www.sapbwconsulting.com/blog/roce-return-on-capital-employed-simply-explained), including SAP Business Intelligence (BI) and SAP Business Warehouse (BW) consulting, SAP ABAP development, and [project management](https://www.sapbwconsulting.com/blog/5-things-to-know-about-your-sap-project-manager). Our services also include a [1099 Contractor Invoicing and Payment Management System](https://www.sapbwconsulting.com/blog/1099-contractor-payments), Salesforce consulting, and Balanced Scorecard consulting for [strategic planning](https://www.sapbwconsulting.com/blog/five-forces-model).   As HubSpot Marketing and Sales Partners, we specialize in [Google Ads](https://www.sapbwconsulting.com/google-ads-management), Facebook Ads, LinkedIn Ads, Account-Based Marketing, Content Marketing, and Ecommerce solutions, including Shopify.   Topics from this blog: [Best Practices](https://www.sapbwconsulting.com/blog/topic/best-practices) [Project Management](https://www.sapbwconsulting.com/blog/topic/project-management) [Consulting](https://www.sapbwconsulting.com/blog/topic/consulting) [Risk Management](https://www.sapbwconsulting.com/blog/topic/risk-management) [Risk Register](https://www.sapbwconsulting.com/blog/topic/risk-register) [Communications Management Plan](https://www.sapbwconsulting.com/blog/topic/communications-management-plan) ### Download SAP BW Mindmap Learn what SAP Business Warehouse is and what it does in under five minutes [![Get this Mindmap](https://no-cache.hubspot.com/cta/default/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b) [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ### Lonnie D. Ayers, PMP About the Author: Lonnie Ayers is a Hubspot Certified Inbound Marketing consultant, with additional certifications in Hubspot Content Optimization, Hubspot Contextual Marketing, and is a Hubspot Certified Partner. Specialized in demand generation and sales execution, especially in the SAP, Oracle and Microsoft Partner space, he has unique insight into the tough challenges Service Providers face with generating leads and closing sales using the latest digital tools. With 15 years of SAP Program Management experience, and dozens of complex sales engagements under his belt, he helps partners develop and communicate their unique sales proposition. Frequently sought as a public speaker in various events, he is available for both inhouse engagements and ** remote coaching. ** ![Balanced Scorecard Consultant](https://www.sapbwconsulting.com/hubfs/social-suggested-images/Balanced%20Scorecard%20Certified%20Graduate.jpg) He also recently released a book **"How to Dominate Any Market - Turbocharging Your Digital Marketing and Sales Results",** which is available on [ Amazon.](https://www.amazon.com/Dominate-Turbocharging-Digital-Marketing-Results/dp/1728357950/ref=sr_1_1?dchild=1&qid=1589182458&refinements=p_27%3ALonnie+D.+Ayers&s=books&sr=1-1&text=Lonnie+D.+Ayers)**** [View All Articles by Lonnie D. Ayers, PMP](https://www.sapbwconsulting.com/blog/author/lonnie-d-ayers-pmp) ## The SAP Blog Subscribe to our blog and receive SAP BW Updates, demand generation, inbound marketing, sales enablement, technology and revenue generation insights and ideas delivered right to your email. [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ![SAP](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/960101754/?value=0&guid=ON&script=0) ![](https://www.facebook.com/tr?id=199270410761059&ev=PageView&noscript=1) ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk#blogposting", "@type" : "BlogPosting", "about" : [ { "@type" : "Organization", "name" : "SAP", "sameAs" : "https://en.wikipedia.org/wiki/SAP_AG" }, { "@type" : "Thing", "name" : "Project", "sameAs" : "https://en.wikipedia.org/wiki/Project" }, { "@type" : "Thing", "name" : "Risk", "sameAs" : "https://en.wikipedia.org/wiki/Risk" }, { "@type" : "Thing", "name" : "Manage", "sameAs" : "https://en.wikipedia.org/wiki/Management" }, { "@type" : "Thing", "name" : "Contract", "sameAs" : "https://en.wikipedia.org/wiki/Contract" } ], "author" : { "@id" : "https://www.sapbwconsulting.com/about-lonnie-ayers#person" }, "dateModified" : "2023-01-01", "datePublished" : "2023-01-01", "description" : "Learn effective strategies to manage subcontractor risks in SAP projects.", "headline" : "10 Steps to Manage SAP Project Sub-Contractor Risk", "inLanguage" : "en", "mainEntityOfPage" : { "@id" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk#webpage" }, "mentions" : [ { "@type" : "Thing", "name" : "Subcontractor", "sameAs" : "https://en.wikipedia.org/wiki/Subcontractor" }, { "@type" : "Thing", "name" : "Delivery", "sameAs" : "https://en.wikipedia.org/wiki/Delivery_(commerce)" }, { "@type" : "Thing", "name" : "Support", "sameAs" : "https://en.wikipedia.org/wiki/Technical_support" }, { "@type" : "Thing", "name" : "Reporting", "sameAs" : "https://en.wikipedia.org/wiki/Business_reporting" }, { "@type" : "Thing", "name" : "Process", "sameAs" : "https://en.wikipedia.org/wiki/Business_process" }, { "@type" : "Thing", "name" : "Procedures", "sameAs" : "https://en.wikipedia.org/wiki/Procedure_(business)" } ], "name" : "10 Steps to Manage SAP Project Sub-Contractor Risk", "potentialAction" : { "@type" : "ViewAction", "name" : "Download Subcontractor Risk Management Guide", "target" : { "@type" : "EntryPoint", "actionPlatform" : [ "http://schema.org/DesktopWebPlatform", "http://schema.org/MobileWebPlatform" ], "inLanguage" : "en", "urlTemplate" : "https://www.sapbwconsulting.com/manage-risk-using-our-risk-management-guide" } }, "publisher" : { "@id" : "https://www.sapbwconsulting.com#organization" }, "url" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#website", "@type" : "WebSite", "name" : "SAP BW Consulting, Inc.", "publisher" : { "@id" : "https://www.sapbwconsulting.com#organization" }, "url" : "https://www.sapbwconsulting.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#organization", "@type" : "Organization", "logo" : { "@id" : "https://www.sapbwconsulting.com#logo" }, "name" : "SAP BW Consulting, Inc.", "sameAs" : [ "https://www.linkedin.com/company/543163/admin/", "https://www.youtube.com/user/SAPBWConsulting/", "https://twitter.com/Lonniea39", "https://www.facebook.com/SAPBWConsulting" ], "url" : "https://www.sapbwconsulting.com" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com#logo", "@type" : "ImageObject", "caption" : "SAP BW Consulting, Inc. logo", "url" : "https://www.sapbwconsulting.com/hubfs/sapbwconsulting_logo.png" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/about-lonnie-ayers#person", "@type" : "Person", "name" : "Lonnie D. Ayers", "sameAs" : [ "https://www.linkedin.com/in/lonnieayers" ], "url" : "https://www.sapbwconsulting.com/about-lonnie-ayers", "worksFor" : { "@id" : "https://www.sapbwconsulting.com#organization" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk#webpage", "@type" : "WebPage", "breadcrumb" : { "@id" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk#breadcrumbs" }, "description" : "Learn effective strategies to manage subcontractor risks in SAP projects.", "headline" : "10 Steps to Manage SAP Project Sub-Contractor Risk", "inLanguage" : "en", "isPartOf" : { "@id" : "https://www.sapbwconsulting.com#website" }, "mainEntity" : { "@id" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk#blogposting" }, "name" : "10 Steps to Manage SAP Project Sub-Contractor Risk", "url" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk#breadcrumbs", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.sapbwconsulting.com", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://www.sapbwconsulting.com/blog", "name" : "Blog", "position" : 2 }, { "@type" : "ListItem", "item" : "https://www.sapbwconsulting.com/blog/10-steps-to-manage-sap-project-sub-contractor-risk", "name" : "10 Steps to Manage SAP Project Sub-Contractor Risk", "position" : 3 } ] } ```