Thursday,Aug 03,2006
SAP lines up $1 bn for India http://www.business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=BO&autono=100316&chkFlg=
Our Economy Bureau / New Delhi August 3, 2006
German software major SAP today announced that it will invest $1 billion (about Rs 4,600 crore) in India over a five-year period to tap the growing market for its products in the country. The company has already invested $500 million in the country.
"India continues to grow in its importance to SAP globally," Chief Executive Henning Kagermann told a news conference here today, adding, "as one of our top eight strategic markets, and now a strategic hub, we are seeing phenomenal growth in demand for our solutions from Indian enterprises."
At present, SAP has more than 1,000 clients in India. It aims to raise the number to 15,000 by 2010.
With today's announcement, SAP joins the growing league of global information technology companies committing investments of $1 billion or more in India.
While IBM has committed $6 billion and Microsoft, $1.7 billion, Intel, Cisco Systems, and AMD had recently announced investments of $1 billion each.
Though Henning declined to give details of the $1-billion investment plan, he said the company would invest $47 million in its new centre at Gurgaon, inaugurated by the chief executive today.
Another ¤30 million would be spent on boosting research and development facilities.
"SAP will increase the headcount in India from 2,750 to 4,000 by the end of this year, and double the current number over the next five years, riding on the demand for SAP's products," Henning added.
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