SAP to invest $1 billion in India; eyes acquisitions

13 November 2008

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.