India Suitable AI Innovation Hotbed; SAP Labs Unlocks New Campus

SAP Labs

SAP Labs India, which is the largest research and development hub for the German software behemoth outside its headquarters, is stepping up efforts to propel global AI innovations. Managing Director Sindhu Gangadharan said that the plans for the new campus in Bengaluru are going well, with the construction of the first phase already work in progress. 

The new campus, wherein approximately 15,000 employees will be housed, is being built at an investment of €80 million and will be developed in three phases. The first phase is likely to get completed by the second quarter of the year 2025. This expansion is testimony to SAP’s commitment towards leveraging India’s rich talent pool that belongs to AI and technology. 

Discussing AI and GenAI, Gangadharan highlighted how this is driving business transformation and bringing immense benefits to organizations in delivering better experiences for customers and bringing about process efficiency. She highlighted the potential of India to spearhead innovation in AI with its skilled workforce, and at the helm are Custom AI and multi-agent AI technologies. 

In a statement given to press Gangadharan said “SAP Labs India is the largest R&D hub for SAP globally, with 40 percent of our global R&D workforce based here,” Currently, SAP has around 15,600 employees in India, out of whom 13,600 persons are on core R&D efforts. Bengaluru features as the company’s only major hub from its five locations in India, including Mumbai, Gurgaon, Pune, and Hyderabad. 

Gangadharan, who recently took over the position as the new chairperson of the apex IT industry body NASSCOM, pointed out that although global geopolitics had been quite trying in the last few quarters, the Indian IT sector was still performing well. The growth rate of the IT sector  stands at 3.8% year-on-year and 5.8% in the domestic market. 

The Indian digital transaction landscape further tells the story of strong demand within the country for technological solutions. “SAP’s presence in India translates to our largest R&D hub and one of our fastest-growing markets,” Gangadharan remarked. 

She added that India stands at the top with AI talent resources, accounting for approximately 16 percent of the global AI talent pool. With an expected impact of $3.4 to $4 trillion on the global economy, AI has emerged as one among the key focus areas of SAP Labs India. So, according to Gangadharan, SAP will continue to propel AI innovations not only from India but put the nation on a pedestal.