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SAP India plans Rs 115-cr expansion

Our Bureau

To sign up new distribution partners


The blueprint
India is one of the 8 strategic markets
Accounts for a large part of revenues in South Asian region
To step up headcount in India
Enhances presence in industry verticals


MR ALAN SEDGHI

Mumbai , June 14

SAP India will be investing € 20 million (Rs 115 crore) in expanding its India operations. The expansion entails augmentation of its software development activity, creation of centres of excellence, as well as a chain of 22 SAP training centres across the country.

The company has already invested an equal amount on software development in India.

India is one of the eight strategic markets for the German software company, Mr Alan Sedghi, President and CEO for SAP South Asia, said at a pressconference here on Wednesday. Currently, the South-Asia region contributes 13 to 15 per cent of SAP revenues worldwide, with India accounting for a large part of it.

SAP has been growing at around 50 per cent in revenues annually, he said. Already in the current fiscal, quarter one (January to March) fetched 94 new customers while quarter two has fetched 70 so far. The company had acquired 180 customers in the whole of the previous fiscal, said Mr Sedghi.

In terms of number of customers, it hopes that the Indian market would account for 10 per cent of the company's global customer base, he said.

One-third of the 3,000 employees to be added on by SAP this year would be in the APAC region where the additions would chiefly be made in India, he said.

New distributors

The company will be signing on new distributor partners for India too, he said. The company is signing up IBM as partner, in addition to Hewlett Packard, which is the existing national distribution partner. Through these companies it will create a network of 100 resellers. There are other potential national-level partners that SAP is talking to.

The focus is now on expanding its offices and increasing its presence in various industry verticals, he said. This year, new SAP offices were opened in Hyderabad, Chennai and Pune. Ludhiana will be added soon, he said.

A Centre of Excellence (CoE) in Gurgaon will take care of the governance vertical, while a retail CoE will likely be set up in Mumbai, he said. There are other States such as Gujarat where CoEs for governance-related work at the State level could be take up, he said.

Retail, utilities, telecom, banking and financial services sectors are the area of focus for SAP in India. This is not to mention a special emphasis on the small & medium enterprises sector which cuts across all industries, said Mr Sedghi.

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