SAP expands offshore to cater to growth markets

SAP AG plans to more than double the number of staff at its software development centres in Bangalore, India, and Shanghai by 2006, and is also considering setting up a new development centre in Eastern Europe, according to a company executive.

“Our main driver is not to save cost but to have huge hubs where the growing markets are,” said Peter Zencke, executive board member of SAP in Walldorf, Germany, who added that there are local market requirements that SAP needs to understand.

In line with this reasoning, SAP will not reduce the number of people it employs in research and development (R&D) in Germany, according to Zencke. “The biggest installed base we have, and still a stable growth market, is in German-speaking countries,” said Zencke.

However, the company’s R&D operation in Germany, with a staff of about 5,000, will not grow as much in terms of head count as the operation in India or in China, according to Zencke, who added that the growth in R&D staff in Germany over the next year would be in the 1.5 to two per cent range.

SAP Labs India, the company’s development centre in Bangalore, does both technology and application development. It is SAP’s largest development facility outside Germany. SAP, which currently employs 1,300 staff at the lab, plans to take the total number of staff to 3,000 by 2006.

The Bangalore lab was involved in the development of NetWeaver, the company’s integration and application platform, and also works on mobile technologies. SAP Labs China in Shanghai currently employs nearly 200 staff who work on software localization, particularly in the area of the double-byte enabling of SAP software for the Chinese, Japanese, Korean and Taiwanese markets.

SAP plans to increase the number of staff at this lab to about 400 by 2006. “The supply of well educated, highly intelligent IT engineers is much better in India than in China,” Zencke said.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Empowering the hybrid workforce: how technology can build a better employee experience

Across the country, employees from organizations of all sizes expect flexibility...

What’s behind the best customer experience: How to make it real for your business

The best customer experience – the kind that builds businesses and...

Overcoming the obstacles to optimized operations

Network-driven optimization is a top priority for many Canadian business leaders...

Thriving amid Canada’s tech talent shortage

With today’s tight labour market, rising customer demands, fast-evolving cyber threats...

Staying protected and compliant in an evolving IT landscape

Canadian businesses have changed remarkably and quickly over the last few...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now