SAP Labs Says India Hub Driving Global AI Innovation; 1st Phase of Bengaluru Campus to be Up by Q2'25

SAP labs India, the biggest R&D hub for German software maker SAP outside its headquarters, is sharply focused on driving global AI innovations from here, managing director Sindhu Gangadharan said adding that plans for opening a new, sprawling campus in Bengaluru are on track.

SAP Labs India is on an expansion drive and the construction of the first of the three phases of a new campus in Bengaluru is already underway, another company official said adding the first phase entailing a capex of Euro 80 million is expected to be completed by Q2 of 2025.

Gangadharan said that AI and GenAI (generative AI) have triggered an "incredible" business transformation, enabling companies to leverage the new-age technologies to reimagine customer experiences and processes, she said asserting that India with its talent and skillset has the power to lead AI innovations.

SAP Labs India is focusing on Custom AI and multi-agent AI technology to drive the next wave of business transformation for its customers, she said.

"SAP Labs India is the largest R&D hub for SAP outside of our headquarters. In fact, 40 per cent of our global R&D workforce is sitting out of India," Gangadharan told reporters here.

SAP labs India is sharply focussed on building innovations for the world, she said.

"We are 15,600 strong in India, as we speak and 13,600 focused on core R&D. And this is the only location of SAP where we have the entire breadth of our product portfolio in one location," she said adding that Bengaluru represents the company's largest hub within India.

"We are present across five cities across India. Bengaluru is our largest hub as we speak. We are also in Mumbai, Gurgaon, Pune and Hyderabad...And I always say India is the place to be, and right now, there's absolutely no doubt about that," she said.

The excitement around India is backed by sheer numbers, said Gangadharan, who recently took over as the new chairperson of apex IT industry body NASSCOM.

Gangadharan pointed to the momentum around technology consumption and digital transactions, as well as the India's strengths in AI and tech talent pool.

"If you just look at the technology industry we are talking about a year-over-year growth of almost 3.8 per cent, and if you look at just look at the domestic technology market, we're talking about growth rate of almost 5.8 per cent. And no matter what's happening in the world out there, it's a crazy world indeed, we are seeing a lot of the geopolitical challenges and all of that, India continues to be a net hirer," Gangadharan said.

The digital transactions are a case in point and highlight the sheer scale of India's appetite for technology.

"For us also as SAP, this translates into multiple things. It's our largest R&D hub, outside our headquarters, and it is one of our fastest growing markets. So that's a very powerful combination, and that's the kind of focal point for us in terms of growth as well moving forward," she said.

Pointing to industry estimates, she said that AI is projected to have an about $3.4 - 4 trillion impact on the world economy in the coming years.

"If I just put on my NASSCOM hat, look at the AI skills penetration, we are number one in here in India. If you look at AI talent concentration, we are number one here in India. About 16 per cent of the world's AI talent is here in India, serving the world," she said asserting that India has the power to lead AI innovation and maintaining its unique edge.

"This is also why our CEO was very clear that India is our hub when it comes to driving AI innovation from India for the world, and our teams here are building a lot of innovations across our product portfolio," she said.

SAP Labs India's focus on Custom AI and multi-agent AI is transforming the way businesses operate by enabling sophisticated interactions and decision-making capabilities that go beyond the traditional scope of AI applications, according to Gangadharan.

"Custom AI is the next big wave in technology because it enables businesses to tailor AI solutions to their unique challenges and opportunities. By personalising AI to fit specific workflows and objectives, businesses can unlock unprecedented levels of efficiency, innovation, and competitive advantage. Our teams at SAP Labs India are leading this Custom AI business mandate to drive value for our customers globally," she added.

SAP Labs is expanding its R&D footprint in India with a sprawling new campus, spread over 41.06 acres. The campus will be developed in three phases to accommodate about 15000 employees. The construction of the phase-one of the new campus is currently underway and expected to be completed by Q2 of 2025.