 "India fastest growing market and will be the largest market for SAP: CEO")
German technology major SAP views India as the fastest growing market, where it plans to embark on an aggressive hiring spree, a top company executive said on Wednesday.
“India is among the top 10 markets for SAP and growing fastest. We will continue to invest in India. We are expanding our campus to accommodate 15,000 more people. Our AI strategy focuses on India because we can scale the best here,” said Christen Klein, chief executive officer, SAP.
SAP has a business footprint across 130 countries, and India is demonstrating the fastest growth rate in the top ten markets for the company.
At present, SAP Labs India has 15,000 employees, the second-largest headcount. By next year, SAP will have a second office in Bengaluru that can house 15,000.
“We will over proportionally hire here versus all the other labs," Klein, who was in Bengaluru along with the company's executive and supervisory boards, told reporters.
This is the first time that the company’s executive board and the supervisory board are meeting at one place.
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On getting the board to India, Klein said: “It was important to show them what is happening here at our lab. The lab is the largest one now, and we find extremely interesting talent here. Yesterday, we had a session showcasing the latest AI use cases and innovations built in the lab. The board was super impressed. This is important because when we discuss budget and investments, they will focus more on India.”
Klein added that a large part of SAPs business AI development is being done out of India Labs. He also said that with its AI centre in India many of the firm’s leader have moved to India to head these development teams.
When asked how AI is fuelling revenue growth for SAP, Klein said 30 per cent of their deals included AI.
“Generative AI has been a massive booster for our AI business. We have ambitious road maps, and AI will be an integral part of everything we offer. Our traditional licensed business will continue to decline as we successfully transform to the cloud. The speed of innovation in the cloud is much faster, which is why many customers, especially in India, are using our cloud software,” said Klein.
On job losses due to AI, Klein said new jobs will be created and SAP will go on a hiring spree.
"As your business is growing 30 per cent each year, you will also need more developers, not proportionally, but proportionally, but we have a growing business."
Thomas Saueressig, head of customer innovation delivery and part of the executive board said he sees more demand for SAP skills in the market.
“AI helps increase productivity, and we are working with our partners to scale and accelerate projects,” said Saueressig.
Muhammad Alam, head of SAP product engineering and member of the executive board, said: “There will be job losses, not because of AI but because people are not using AI well.”
When asked if SAP’s investment is coming to India as there is a shortage of talent in Germany. Klein added that the company continues to invest in Germany but India has a ‘fantastic’ base.