With continued momentum of over 100 per cent growth both in terms of software license revenue and customer acquisition over the last year, SAP India, the fastest growing region within SAP, was named the ‘Jewel in the Crown’ of SAP worldwide. Reiterating its leadership position in the market, SAP India has also clocked growth of 67% in the software license revenue in the first quarter of 2008. While small and midsize revenue grew by 43%, consulting and education revenue grew by 34% and 100%, respectively
Announced at SAP Summit 2008, SAP India’s three-day annual business and technology forum that is likely to see over 3,500 participants, Bill McDermott, President & CEO of SAP Americas & Asia Pacific Japan states, “I am extremely proud to announce that with holistic growth and strong continued momentum, SAP India has emerged as the ‘Jewel in the Crown’ for SAP worldwide. We at SAP pledge to strengthen our commitment to the Indian market and continue to be the catalyzing force behind this unprecedented growth story.”
Independent industry analysts confirm SAP’s dominance in the Indian Enterprise Applications market. “SAP recorded a market share of 40% in terms of revenue in the Indian Enterprise Applications market during CY 2007. In the small and midsize segment, SAP captured a market share of 27% in terms of revenue during the same period,” commented Praveen Sengar, Sr. Manager – Software and Services and Industry Verticals Research, IDC (India) Ltd. “A competitive advantage due to product positioning, good channel development and reach, a strong brand image and implementation across verticals have all contributed to this dominant position.”
New Business Wins and Competitive Win-Backs: Prove SAP is Best Fit for India Inc.
The overall growth was even more impressive as it cuts across industry verticals and solution segments. Some sectors that witnessed significant business wins included Utilities, Banking, Financial Services and Insurance (BFSI) firms, Automotive and Retail. Some of the new customers that were added included Delphi TVS, Greaves Cotton Ltd, Easun Reyrolle Ltd and IFB Industries Ltd. In particular, the public sector vertical has performed exceedingly well, consolidating its strong presence in this space with customers that include Mormugao Port Trust, Bharat Earth Movers Ltd and Chattisgarh State Electricity Board among others.
In fact, the record-breaking topline growth comprises not just new business wins, but a significant number of competitive win-backs including Moser Baer to Sasken Communications and Greaves Cotton Ltd. This indicates that companies are increasingly migrating to SAP solutions to foster their growth. The stability, scalability and long-term outlook of SAP solutions has taken the customer satisfaction index to the 91.9% mark.
SAP Ventures Invests in India: Partners Indian Innovation
SAP will foster and nurture innovation in corporate India through SAP Ventures. Directly investing in India for the first time, the company will help Indian entrepreneurs build fast-growing companies with a global footprint. For over 12 years, SAP Ventures has been investing in companies in USA and Europe that build innovative new technologies and applications. Investing in India has now become a key focus for SAP Ventures, both since India is one of the fastest growing economies in the world and due to the large talent pool that is at the forefront of the technology revolution.
As Nino Marakovic, SVP and Head of SAP Ventures, comments, “Indian innovation already benefits the global economy. Indian companies have been building products on an out-sourced basis for sometime, but have now started developing and selling directly to value conscious customers worldwide. We are thrilled to be investing directly in Indian start-ups with a broad investment focus. We look forward to being party to the powerful innovative spirit and eco-system in this country.”
SAP Ventures operates under two independent but synergistic imperatives. First, it acts autonomously in discovering and pursuing opportunities for outstanding financial returns that may be independent of or central to SAP's corporate strategic focus. Second, it brings substantial benefit to both its portfolio companies and SAP by facilitating interaction between innovative young companies and the SAP ecosystem.
SAP Business by Design: Supporting Faster Time to Value
SAP® Business ByDesign™, the company’s most complete and adaptable on-demand business software solution , is now announced for India. Complementing the established and very successful SAP solution portfolio for small and midsize companies, the solution is targeted exclusively to mid-market companies ranging from 100 to 500 employees, including growing companies that typically have not invested in these types of integrated business solutions before. For more information please see press release “SAP India catalyses Nation’s SME Boom”.
As Ranjan Das, President & CEO SAP Indian Subcontinent comments, “SAP India has emerged as a de-facto partner for corporate India on its journey to global competitiveness. We intend to build on this partnership as India Inc. scripts the next phase of its growth.”