SAP to invest US$2 billion in China
SAP AG will spend more than US $2 billion through to 2015 to grow its business in China, demonstrating its long-term strategic commitment to the world’s second-largest economy.
“We have successfully grown our business in China over the past 20 years and now want to scale our operations to fully meet the needs of both enterprises and our ecosystem,” said Bill McDermott, co-CEO, SAP AG. “Our SAP Labs and SAP Research facilities there will continue to drive innovation for our Chinese customer base. We will also create more research and development facilities, hire thousands of people, train more experts and consultants and bring our world-class benchmarking methodology to China — all aimed at helping drive sustainable growth through ‘informatisation’.”
SAP plans will see spending and investment in four key areas:
1. Creating solutions: The company plans to drive further alignment between SAP and Sybase in China, with SAP Labs in China to be the primary innovation centre for the development of new solutions tailored to meet country requirements.
2. Delivering solutions: SAP said growing its business in China will require a significant increase in market presence, and to this end, SAP aims to hire around 2000 people through 2015, open five to six new offices across the country and sale all support functions appropriately.
3. Supporting solutions: “Investing in the services and support functions that deliver value and drive co-innovation are critical to meeting growth objectives. The SAP® Active Global Support (SAP AGS) organisation has already taken steps to specifically address the needs of companies operating in the Chinese market,” SAP said. It plans to scale SAP AGS and the SAP Services organisation to support growth.
4. Growing the IT ecosystem: SAP plans to build mutually beneficial relationships with both traditional and non-traditional partners to exponentially expand its reach. “SAP’s experience in China shows that when the company invests, its local and global partners also invest. In this way, SAP’s investments create a significant multiplier effect across the entire Chinese IT ecosystem.”
SAP China president Hera Siu said, “This is an exciting time for SAP China as we embark upon this significant plan. With this increased level of commitment, we are better positioned to help China enterprises run better, thereby contributing to China’s transition to a knowledge-based economy, a key component of China’s 12th five-year plan. It will also spur broader innovation across the IT industry here for customers and partners throughout the ecosystem.”
Read the source article at Inside SAP