The Hindu Business Line : $1-b investment plans on track: SAP chief

Vision 2010
Aims at reaching 1-lakh customers globally by 2010
Doubles customer base in India to 2000 within a year
Expands alliance with Wipro by means of setting up solutions lab in Bangalore

Our Bureau

New Delhi, Aug. 28 Bullish on the strategic role of India in its ‘Vision 2010’, software giant SAP today said it has doubled its customer base in India to 2000 within a year, and announced that IT major Wipro would open a SAP Solutions Lab in Bangalore to expand an existing alliance.

Addressing a conference in the backdrop of the company’s first board meeting in India, its CEO and Chairman of the Executive Board, Mr Henning Kagermann, said that the company’s earlier plans to invest $1 billion in India, was “on track”.

Globally, the company has a goal of reaching 1-lakh customers by the year 2010, by aggressively targeting small and midsize enterprises (SMEs) and emerging markets such as India and China.

“The unprecedented growth that we are seeing from India is one of the best examples of how our 2010 strategy translates into action. Markets like India are at an inflection point when it comes to adoption of technology by business of all shapes and sizes,” Mr Kagermann said.

The ongoing visit of the SAP top brass indicates the rising importance of India to SAP both as a vibrant market as well as technology development and services-support delivery centre.

Domestic revenue

In 2006, the company clocked revenue of €98 million in India – its third largest subsidiary; and the largest R&D hub and support presence outside Germany for the Walldorf-headquartered firm. The company currently has 4,200 employees on India rolls.

SAP also announced addition of NTPC and ITC Papers as its new customers in India. “Overall, we have seen a strong H1 performance in 2007, in line with our guidance. Asia Pacific has delivered the strongest growth, and we have seen excellent results from India, Japan and China, driven by fast adoption of enterprise software,” Mr Leo Apotheker, Deputy CEO and executive board member of SAP, said.

The company said that SME was the fastest growing segment for the company in India, and pointed out that clients ranging from Subhiksha Retail to Masaurhi Petrol Station were buying its software.

Services partner

SAP today also announced the expansion of its existing partnership with Wipro, under which the Bangalore-based IT firm would become a SAP global services partner and establish a solutions lab in Bangalore to showcase the benefits of enterprise Service Oriented Architecture, industry best practices, and innovate service-delivery models.

Wipro and SAP would leverage their respective strengths — including Wipro’s in-depth industry knowledge and implementation skills and SAP’s range of enterprise applications — to jointly conduct sales promotion programmes for mutually agreed upon regional markets.

Acquisition strategy

Replying to a query on SAP’s acquisition strategy in the backdrop of 10 buy-outs announced by the company over the past year or so, Mr Kagermann said one could expect a “similar number” of acquisitions this year.

“It is too early to speculate, but there is no change in our strategy…it really depends on what we need. It depends on whether we get capabilities from such companies to grow faster and consolidate our position as a market leader,” he said but declined to reveal specific plans.

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