SAP to Launch New Centre of Excellence in Bengaluru
Expanding Operations to Meet Global Demand
German IT firm SAP is set to open a new Centre of Excellence in Bengaluru, which will accommodate 15,000 employees. This state-of-the-art facility is expected to go operational in August 2023 and aims to address the growing business needs, both globally and within India.
Strengthening India’s Role in SAP’s Development
"India is one of our largest development centers, and this new facility will enhance our capacity further," stated Muhammed Alam, a member of SAP’s executive board and head of Product & Engineering. His remarks were made during the SAP Sapphire 2025 event, highlighting India’s significance in the company’s global operations.
Overview of the New Campus
The new Centre of Excellence will be situated on a sprawling 41-acre greenfield campus in Devanahalli, Bengaluru. This site marks the second campus for SAP in the city, reinforcing the company’s long-term commitment to the Indian market.
A Growing Workforce
Currently, SAP Labs India employs around 14,000 people across five major cities: Bengaluru, Gurugram, Mumbai, Hyderabad, and Pune. This new facility will not only increase SAP’s manpower but will also enhance its research and development capabilities.
Research and Development Hub
SAP Labs India is the largest R&D division for SAP outside its headquarters in Walldorf, Germany. This expansion is expected to further drive innovation and development in the region.
Embracing Artificial Intelligence
The Bengaluru campus will focus on innovating key Artificial Intelligence use cases across several solutions, ranging from S/4 HANA to HXM, including a new sustainability suite. This will enable SAP to better serve its clients by leveraging cutting-edge technology.
India’s Market Potential
Manish Prasad, president and managing director of SAP Indian Subcontinent, emphasized that India is aligned with SAP’s growth trajectory. The Indian market is strong, comprising 25 different business verticals such as automobile, healthcare, and retail.
Rapid Adoption of AI
Prasad noted the accelerated pace at which Indian companies are adopting AI technologies. "We are also tapping into the mid-sized markets," he mentioned, indicating a strategic focus for SAP.
Addressing Trade and Visa Concerns
When asked about the impact of trade and visa restrictions imposed by the US, SAP CEO Christian Klein assured stakeholders that their various campuses, including locations in Palo Alto, have not faced issues shifting professionals.
No Delays in IT Projects
Klein confirmed that SAP has not experienced delays in ongoing IT projects, despite potential disruptions in the supply chain and logistics. However, he noted that there could be changes in manufacturing, particularly with a shift toward Indonesia over China.
Supporting Global Teams
Regarding the hybrid working model, Prasad highlighted that while this model will persist, teams will continue to collaborate in person for project engineering and support services for global clients.
Meeting Domestic Needs
"This new facility will augment engineering work for international clients while addressing the growing support service demands of domestic clients," Prasad explained.
Commitment to Sustainability
The green campus will be designed with a commitment to minimizing environmental impact and enhancing employee wellness and inclusivity. This focus aligns with SAP’s broader corporate responsibility goals.
Future-Proofing the Workforce
As SAP continues to expand, the new Centre of Excellence aims to ensure that employees thrive in a conducive work environment, equipped with the resources and technology they need.
Conclusion
The opening of this new facility marks a significant milestone for SAP in India, allowing the company to strengthen its presence and capability in one of the fastest-growing tech markets in the world.
Questions and Answers
1. What is the main purpose of SAP opening a new Centre of Excellence in Bengaluru?
The new Centre of Excellence aims to accommodate growing global and domestic business needs by enhancing SAP’s capacity and capabilities in India.
2. When is the new campus expected to become operational?
The new facility is expected to open in August 2023.
3. How many employees will the new Centre of Excellence accommodate?
The Centre of Excellence will accommodate 15,000 employees.
4. What key technological focus will the new campus have?
The new campus will focus on innovating key Artificial Intelligence use cases and solutions.
5. How does SAP view the current market conditions in India?
SAP considers India a vibrant market with strong growth potential across various verticals, including automobile, healthcare, and retail.
