Bangalore: The world’s biggest business software firm SAP AG with revenues of $18.91 billion in 2006, said it hopes to increase revenue from India, to $1 billion, or Rs3,932 crore, within five years.
SAP India’s revenues were Rs556 crore in 2006, up nearly 35% over the previous year.
Billion-dollar strategy: John Nugent, executive vice-president and chief operating officer of SAP Americas and Asia-Pacific Japan.
Along with China, India has become one of the fastest growing markets for the company as firms increase technology spend to match business growth. With 5,000 employees, SAP India has the third highest number of company employees after Germany and USA.
“Our India business (has) doubled in one year. You keep that going for four or five years, you find yourself (having) a billion-dollar business,” said John Nugent, executive vice-president and chief operating officer of SAP Americas and Asia-Pacific Japan.
Indian companies want the implementation of its enterprise resource planning (ERP) software with modules for accounting, inventory management, human resources and customer support in 12 months or half the time it took to implement in the past. “Right now, the one concern (for Indian companies) is growth and scalability,” said Nugent.
SAP has doubled its customer base in India to 2,000 since August 2006.
“Even though China’s GDP is thrice of India, SAP does relatively equivalent amount of business in India and China,” said Nugent.
Analysts say adoption of business software by small and medium businesses and partnership with local software vendors has helped drive growth for SAP in India. SAP works with Indian software service providers, such as Tata Consultancy Services Ltd, Infosys Technologies Ltd and HCL Technologies Ltd, to offer consulting and implement the business software for clients globally.
“SAP’s channels (partners) strategy is an important reason for their increased coverage,” says Asheesh Raina, a principal analyst at technology researcher Gartner Inc.