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India's Innovation Attracts SAP
By Pankaj Maru
CXOToday, Mumbai
Jun 5, 2008
In January 2006, the out-going CEO of SAP, Henning Kagermann said, "India is slowly getting expensive. So, we've decided to hire a certain number there, and then start looking at other locations." He was quoted in the German edition of Financial Times.
It's over 2 years now since this statement was made, and today we see a total shift in SAP's business strategy.
India has made phenomenal progress, particularly with the IT companies propelling the overall economy toward constant growth. This growth is being realized by many big companies. And SAP India is no exception.
For SAP India, this progress was attractive enough and in the ongoing SAP Summit 08, the company has revealed its investment plans for India. By 2010, the company plans to invest around USD 1 billion through SAP Ventures.
While referring to Kagermann's statement about Indian offshore development market getting expensive, Bill McDermott, president and CEO of SAP (Americas and Asia Pacific Japan) commented, "India is an attractive and expanding market and it's growing continuously."
McDermott added, "We'll invest in IT sector, particularly enterprises and emerging companies. At present, we're looking at a dozen investments, and within next 2-3 months we'll close 3 investment deals."
Ranjan Das, CEO and president of SAP India, stated, "SAP hasn't come to India to find cheap offshore development services. Instead, it has come for innovation and India offers that."
SAP Ventures started its operations in 1997 and over the past 12 years it has been investing in IT companies in the US and Europe. Presently, it has invested in 38 companies globally. Red Hat, Virsa, and MySQL are some of the US companies it has invested in.
However, this is the first time, SAP Ventures plans for direct investments in India. This is expected to boost emerging companies working in the field of innovation and technology. The investment size would be about USD 4-5 million and could go up to USD 8-10 million.
By Pankaj Maru
CXOToday, Mumbai
Jun 5, 2008
In January 2006, the out-going CEO of SAP, Henning Kagermann said, "India is slowly getting expensive. So, we've decided to hire a certain number there, and then start looking at other locations." He was quoted in the German edition of Financial Times.
It's over 2 years now since this statement was made, and today we see a total shift in SAP's business strategy.
India has made phenomenal progress, particularly with the IT companies propelling the overall economy toward constant growth. This growth is being realized by many big companies. And SAP India is no exception.
For SAP India, this progress was attractive enough and in the ongoing SAP Summit 08, the company has revealed its investment plans for India. By 2010, the company plans to invest around USD 1 billion through SAP Ventures.
While referring to Kagermann's statement about Indian offshore development market getting expensive, Bill McDermott, president and CEO of SAP (Americas and Asia Pacific Japan) commented, "India is an attractive and expanding market and it's growing continuously."
McDermott added, "We'll invest in IT sector, particularly enterprises and emerging companies. At present, we're looking at a dozen investments, and within next 2-3 months we'll close 3 investment deals."
Ranjan Das, CEO and president of SAP India, stated, "SAP hasn't come to India to find cheap offshore development services. Instead, it has come for innovation and India offers that."
SAP Ventures started its operations in 1997 and over the past 12 years it has been investing in IT companies in the US and Europe. Presently, it has invested in 38 companies globally. Red Hat, Virsa, and MySQL are some of the US companies it has invested in.
However, this is the first time, SAP Ventures plans for direct investments in India. This is expected to boost emerging companies working in the field of innovation and technology. The investment size would be about USD 4-5 million and could go up to USD 8-10 million.