SAP, the world's largest maker of business software by revenue, has lined up plans to invest around $1 billion in acquisitions and expansion in India over the next two years.

The German company has so far invested a little over $25 million to build its R&D centre, SAP Labs India, and currently employs around 5,200 professionals in India, including 4,000 in R&D.

SAP India, the business software solutions company with operations in Bangalore, has said it expects to meet its employee headcount target of 7,000 by 2010 despite global economic slowdown.

''We are comfortable with 4,000- 5,000 employees for SAP Labs. We will leverage scalability for new product development,'' said Peter Zencke, member of executive board, SAP AG.

He said the company would invest the $1 billion for new technology, service-oriented architecture (SOA), infrastructure and new designs.

SAP AG, which saw its German business slow amidst the global slowdown, had earlier said it was looking at possible acquisitions in India.

SAP's software sales rose 46 per cent in India in the third quarter ended September, from a year earlier. With over 3,500 business customers in India, SAP expects its revenue from India to grow to $1 billion in five years.

''We have recorded a growth of 46 per cent in Software Revenue (in non-GAAP constant currency) in the third quarter of 2008, which is our highest in India so far,'' said Ranjan Das, president and CEO, SAP Indian subcontinent, on the occasion of SAP TechEd 2008.

The company also announced extension of its remote learning offerings in the Asia Pacific region, claiming savings of up to 70 per cent compared to SAP Instructor-Led Training (ILT).  The courses are currently available in India, Singapore, Malaysia, Thailand, Philippines, Indonesia, Pakistan, China and Australia with expected roll-out in Vietnam, Latin America, West Asia, Western Europe and select African countries by March 2009.