India Emerges as Key Growth Hub for SAP with New Bengaluru Innovation Centre

India ranks among SAP's fastest-growing markets worldwide, fuelled by robust economic momentum and a surge in AI and cloud adoption, according to Manish Prasad, President and Managing Director for the Indian Subcontinent. In an interview with PTI, Prasad highlighted the German software giant's substantial commitments, including a new innovation centre in Bengaluru and the rollout of its SAP Sovereign Cloud, as evidence of its bullish outlook. These initiatives underscore SAP's strategy to bolster India's digital infrastructure amid global uncertainties, ensuring resilient, sustainable enterprise solutions for businesses navigating rapid transformation.

Prasad dismissed concerns over international disruptions, asserting they have not altered SAP's India-focused approach. "The essence of SAP all along has been about creating business-critical applications and platforms that are resilient and sustainable," he said. With India's economy accelerating across sectors, from semiconductors to manufacturing, the company views the nation not merely as a consumer of technology but as a pivotal creator. "SAP India continues to be one of the fastest market units for SAP globally," Prasad added, crediting the country's innovative spirit and talent pool for sustaining growth despite headwinds.

Central to SAP's expansion is the SAP Sovereign Cloud, launched last month in full compliance with India's National Information Security Policy and Guidelines. This full-stack framework—encompassing infrastructure, platforms, applications, and AI—offers users control over sensitive data through data, operational, technical, and legal sovereignty. It enables modernisation with cloud and AI technologies while addressing cybersecurity needs, particularly as Indian firms invest heavily in large and small language models (LLMs and SLMs). "The amount of investments that our customers are doing in the area of AI, frugal AI... it is extremely important that we develop that in a very secure environment," Prasad emphasised.

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Complementing this is SAP Labs India's new 41-acre campus in Devanahalli, Bengaluru—the company's second facility there and one of its largest globally—announced in August with a phased €194 million investment. Already housing 3,200 employees, it aims to reach 4,500 in the initial phase within months, scaling to 15,000 professionals by Q3 2028.

Managing Director Sindhu Gangadharan noted during the launch that the campus fosters innovation in AI reliability and secure data frameworks, aligning with India's shift toward self-reliant tech ecosystems. These developments position SAP to support the nation's data sovereignty goals, vital for industries generating vast volumes amid economic expansion.

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