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SAP to expand operations in China and India

Warwick Ashford

SAP plans to increase its workforce in China and India to capitalise on fast-growing Asian markets.

The German enterprise software maker, which gets about 16% of its revenue from the Asia-Pacific region, aims to increase employees in the two countries by 200 to 300 each, according to Reuters.

This means a 7% to 11% increase in China and a 4% to 6% increase in India, which is the biggest SAP subsidiary in Asia-Pacific with around 5,500 employees ahead of the planned increases.

SAP hopes to steal a march on competitors in the public sector, retail and financial services markets through innovations in cloud computing, mobility and in-memory computing.

Last week, SAP improved its financial outlook for the year after reporting an overall 35% growth in software sales and 20% growth in services revenue for the second quarter.

Total revenue for the second quarter was up 20% on the same period a year ago at €3.3bn (£2.9bn), support revenue was up 15% at €1.7bn, after-tax profit was up 25% and earnings per share increased 26%.

In Asia-Pacific, second quarter revenue was €513m, up 20% from 2010 and representing around 16% of the global revenue for the quarter.

SAP expects Asia-Pacific to be remain one of the fastest growing regions in the coming year.

Since taking over last year, co-chief executive officers Bill McDermott and Jim Hagemann Snabe have sought to improve customer relations and increase innovation, particularly in cloud and mobile services.

Snabe said businesses are shifting more of their investment toward software as it continues to become a larger and more important component of the overall technology stack.


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