According to CEO of the German software giant SAP SE Christian Klein, the company intends to double its investments in India over the next five years. SAP will foster start to finish center items in India and Klein said he anticipates that the nation should turn into a development center for SAP.
He went on to say that SAP is also assisting multinational corporations in shifting a portion of their operations to India in an effort to de-risk and de-concentrate their supply chains. Because of SAP’s strong economy, talent pool, and isolation from geopolitical tensions, Klein believes that Asia, and India in particular, is a winner in global scenarios.
Christian Klein mentioned that SAP is assisting large multinational corporations in moving to safer, stable environments like India in order to de-risk their logistics and supply chains from concentration in any one region. He said that even though China still had the advantage 3 to 4 years ago, and the perception and political environment now favors India.
Christian Klein said that since SAP is out of Russia, the company has discovered a talent shortage in Germany and Europe, and also faced lockdown disruptions in China, and has issues with concentrated talent in Silicon Valley in North America, and the Indian market makes the most sense.
They believe that India is one of the nations that will benefit from this shift because it has access to a market and customers who are willing to innovate and invest in technology such as generative AI and blockchain, among other technologies.
Christian Klein added that ChatGPT, AI, and the metaverse will be disruptive in certain parts of the business. However, Klein thinks they will have strong use cases rather than disrupting the business. The technology will get better over the next two to three years, and in order to keep customers ahead of the competition, SAP needs to start implementing this solution.