SAP’s Strategic Focus on India Amid Global Disruption

Aiming for Growth Through AI and Innovation

As global businesses face challenges from supply chain volatility and digital disruption, SAP is intensifying its commitment to India. This strategic move is being championed by Manish Prasad, the president and managing director of SAP Indian Subcontinent.

India has emerged as one of SAP’s fastest-growing markets globally. “We’re accomplishing a significant amount of our work in India,” Prasad shared. This reflects the company’s broader strategy to leverage India’s talent and market potential.

SAP has already deployed 210 artificial intelligence (AI) use cases across various industry verticals worldwide, with plans to reach 400 by year-end. Remarkably, “a substantial portion of this work is happening out of India,” Prasad revealed in a recent interview with ET.

The Role of SAP Labs India

SAP Labs India stands out as one of the largest research and development centers outside of Walldorf, Germany. Prasad emphasized that many of the AI capabilities developed for SAP’s copilot Joule are being advanced in India, underscoring the importance of the Indian hub in the company’s R&D efforts.

Prasad acknowledged the varying stages of AI adoption among Indian enterprises. While technology firms are at the forefront, traditional manufacturers are increasingly focusing on predictive maintenance, logistics management, and quality control to enhance their operations.

Riding the AI Wave

There is a consensus in the corporate world around the necessity of AI adoption. Prasad stated, “There is no debate on whether to adopt AI – it’s only a matter of how quickly it can deliver value.” He pointed out that from boardrooms to user groups, everyone is eager to know, “How quickly can we see impact?”

Regulatory Balance in AI Adoption

On the topic of regulation, Prasad expressed support for India’s balanced approach to technology governance. He remarked, “There will always be a balance between innovation and regulation.” His belief is that India’s focus on preventing harm while allowing room for growth is indeed the right step forward in the realm of AI.

“We operate a highly compliant global business and see no hindrance from EU laws as long as data is managed responsibly,” he added, indicating SAP’s confidence in navigating regulatory landscapes.

Recent Achievements and Expansions

In a significant milestone, last month SAP’s market capitalization soared past $320 billion, making it the largest European company. Additionally, the company reported a mammoth 58 percent year-on-year jump in profit for the January-March quarter, amounting to €2.5 billion ($2.9 billion) and surpassing analyst estimates.

While Prasad did not elaborate on India-specific revenue figures, he noted that “talent, scale, and opportunity” are key aspects frequently highlighted in SAP’s releases, reflecting India’s importance to the company’s overall strategy.

Investing in the Future

To bolster its operations further, SAP is expanding its physical presence in India by establishing a second campus in Bengaluru. The company is dedicated to strategic hiring, enhancing its ability to tap into local talent and capabilities.

In conclusion, SAP’s commitment to innovation, along with a strategic focus on India, positions the company well to navigate the challenges posed by global disruption while capitalizing on the immense potential of the Indian market.

Questions & Answers

• Q1: What is the significance of India in SAP’s global strategy?

  A1: India is one of SAP’s fastest-growing markets, contributing significantly to its innovation and AI development efforts.

• Q2: How many AI use cases has SAP deployed globally?

  A2: SAP has deployed 210 AI use cases globally and plans to reach 400 by the end of the year.

• Q3: What is the role of SAP Labs India?

  A3: SAP Labs India is a major research and development center where many critical AI capabilities are developed.

• Q4: How does SAP view AI regulation in India?

  A4: SAP supports India’s balanced approach to regulation, believing it should prevent harm while promoting innovation.

• Q5: What recent achievements has SAP indicated?

  A5: SAP recently crossed a $320 billion market cap and reported a 58% increase in profits for the January-March quarter.