According to CEO Christian Klein, the German software giant SAP SE plans to double its investments in India. Over the next five years. This action is part of the company’s efforts to make India an innovation hub for SAP. And to develop end-to-end core products there. SAP also helps large multinational companies move parts of their operations to India. This is an example of the growing trend towards de-risking as companies get tired of having all of their supply chains in one place.
Klein says that India is a winner on the world stage because of its strong economy, large talent pool, and ability to handle geopolitical tensions. He says that SAP helps big multinational companies move to “safer, more stable environments” like India. So that their supply chains and logistics aren’t too dependent on any one place. China had an advantage three to four years ago, but the “perception and political environment” have shifted in favor of India, according to Klein.
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Due to its absence from Russia, its small presence in Ukraine, the talent shortage in Germany and Europe, lockdown disruptions in China, and issues with concentrated talent in Silicon Valley. SAP already has a presence in the nation and views it as the most logical market to invest in. SAP’s decision to double its investments there demonstrates the company’s faith in the country’s economic prospects. Talent pool, and ability to provide a secure and stable environment for companies looking to de-risk their supply chains. By designating India as an innovation hub. SAP is well-positioned to benefit from the nation’s expanding significance in the global economy.
