SAP, Billion, India

SAP to invest $1 billion in India over 5 years

SAP AG plans to invest $1 billion in India over the next five years, to expand its research facilities and tap more Indian customers, the company's chief executive said Wednesday.

The German company also plans to add 750 employees to its Indian staff by the end of the year, Chief Executive Henning Kagermann told reporters.

Most of the US$1 billion will be spent on research and development, and on hiring more engineers, Kagermann said.

"The quality of talent, innovation and performance coming from India is truly impressive and our additional investments are designed to harness more of the same," he said.

SAP employs about 2,800 people in India and operates a research and development facility at Bangalore, the country's technology hub.

This year, the Bangalore center will account for a fifth of SAP's research and development spending worldwide, Kagermann said, adding that the company has invested US$500 million in India since 1996.

SAP's news is the latest in a string of big-ticket technology investments planned for India.

In June, IBM Corp. said it will triple its investment in India to US$6 billion (euro4.7 billion) over the next three years. Microsoft Corp. plans to double its work force in India by 2010 with an investment of US$1.7 billion (euro1.3 billion), while both Intel Corp. and Cisco Systems Inc. have committed to invest US$1 billion (euro780 million) each.

Kagermann said his company has designated India as its "strategic hub" in the Asia-pacific region.

SAP will build a new global service support center in Gurgaon, another outsourcing hub in India near the capital, New Delhi. That office is also expected to strengthen the company's marketing network in northern India.