Systems Applications and Products in Data Processing (SAP), one of the major software companies in Europe has declared their future investment plan in India. On Wednesday, the company’s chief executive, Henning Kagermann, told reporters that their company would be investing $1billion in the next five years in India. The main goals of this investment are as follows:
- The bulk of this investment will be spent in expanding the company’s research facility.
- To increase its presence in India and bring in more customers.
- The company is also planning to add another 750 employees by the end of 2006.
SAP is one of the most famous European software companies. It is ranked after Microsoft and Oracle. The company mainly produces software for various business processes, such as payroll, client orders etc. The main product of this company is SAP R/3, which is an Enterprise Resource Planning (ERP) software. The company came in India in 1996. Since then, it has invested $500 million in their Indian subsidiary.
More and more big IT companies are coming in India because of the availability of cheap and skilled labor. In June, IBM declared that it would invest $6billion in India. Now, India’s software industry is at its peak, as the big foreign IT companies are investing in India. However, this may not last long if the Indian government does not give enough attention to the IT sector. From now on, the Indian government should focus on building a better IT infrastructure and producing more skilled IT engineers.
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