For the world’s top corporate software company, SAP, India is not just an IT services provider. The company’s India business grew by “solid double digits” during the three months from April-June, as revenues from India’s manufacturing companies saw high growth.SAP’s optimism on India is significant as the shift in customer-base seems to indicate that manufacturing activity is slowly gaining ground in the country.
Globally, SAP’s revenue during the quarter stood at €1 billion (R6,900 crore).
“In the past a lot of (our) growth came from the services industries in India because India was seen as a services hub for the world. But (for the last several quarters) we actually have very high growth rates in manufacturing as well,” Jim Hagemann Snabe, co-CEO of SAP, told HT.
He added that the manufacturing firms in the consumer products space are fast adopting SAP solutions. “A lot of successful Indian companies that are turning global adopt our applications, which in effect makes India an important market for SAP,” Snabe said.
SAP’s success story in India also underlines the fact that the country is fast turning into a hot market for IT services. “Our business in India grew by solid double digits which we have had for many quarters so we continue to see how our technology is being adopted.” He however did not specify India’s share in the company’s revenues.
Snabe said that the entire Asia Pacific region grew by 26%. SAP expects that the Asia Pacific region would be the fastest growing region for quite some time to come.
In view of India’s importance, the company is making strong investments for its businesses in the country, he said.