SAP is to open a new supply chain research and development centre in Budapest which will employ up to 300 software engineers by the end of next year.
SAP’s move will allow it to take advantage of high-level IT skills in Hungary as well as lower wage costs. Although Hungary’s wages are not as low as those in India for example, its location in central Europe has made it popular with other big IT suppliers, such as Microsoft.
The centre will open in May and will lead SAP’s research and development on supply chain management applications.
SAP has previously estimated it will employ a further 3,000 people worldwide this year.
Budapest is SAP’s fourth European R&D centre. SAP says it invested more than £700m in R&D last year, with around 70% of it spent in Europe.
SAP’s other research centres are in Walldorf, Germany (SAP’s headquarters); Palo Alto, California; Bangalore; Tokyo; Sophia Antipolis, France; Sofia, Bulgaria; Montreal; Tel Aviv and Shanghai.