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Germany’s SAP Chooses India As New Epicenter For Workforce

Business software maker moves hiring and AI investment focus to India, reflecting shifting global tech hiring strategies.

Emma AscottbyEmma Ascott
November 6, 2024
in News
Reading Time: 2 mins read
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Germany's SAP Chooses India As New Epicenter For Workforce

Figurines with computers and smartphones are seen in front of SAP logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Business software maker SAP will hire “over proportionally” in India, which will soon house its biggest workforce, overtaking the headcount in its German headquarters, CEO Christian Klein said on Wednesday.

SAP Labs India currently has 15,000 employees, the most number of engineers for the company worldwide and the second-highest overall headcount. India is among SAP’s top 10 markets by revenue and its fastest-growing one, Klein said.

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“We will over proportionally hire here [India] versus all the other labs,” Klein, who was in the southern Indian city of Bengaluru along with the company’s executive and supervisory boards, told reporters.

Klein said a majority of future investments into research and development (R&D) and customer success will go to India, but did not divulge specifics on hiring numbers or time lines.

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SAP is building a second office in Bengaluru, with an additional capacity of 15,000 people.

Klein said SAP’s main team for its artificial intelligence (AI) strategy is located in India, with more leaders heading development teams based out of the country.

This shift underscores a broader trend in the future of work where global tech talent hubs are diversifying beyond traditional locations, like Europe and North America, to rapidly growing markets such as India. 

Addressing concerns regarding job losses due to generative AI (GenAI), Klein said SAP will continue to hire as long as the business is growing.

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“As your business is growing 30% each year, you will also need more developers, not proportionally, under proportionally, but we have a growing business.”

By prioritizing investments and hiring in India, SAP is tapping into a vast, skilled workforce and positioning itself at the forefront of AI and software development. 

As more global companies recognize the advantages of talent in emerging markets, we can expect continued shifts in where critical R&D and leadership teams are based, impacting innovation, local economies, and career opportunities on a global scale.

(Reporting by Emma Ascott, Haripriya Suresh in Bengaluru; Editing by Savio D’Souza)

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Source: Reuters
Tags: BusinesseuropeWorkforce
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Emma Ascott

Emma Ascott

Emma Ascott is the Associate Editor for Allwork.Space, based in Phoenix, Arizona. She covers the future of work, labor news, and flexible workplace trends. She graduated from the Walter Cronkite School of Journalism and Mass Communication at Arizona State University, and has written for Arizona PBS as well as a multitude of publications.

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