SAP Labs China in Shanghai will support current development of SAP’s enterprise management products and address development requests from local customers. SAP has run a software center in the country for over seven years, but it worked mainly on China localization.
The new 120-engineer center "is designed to be a world-class software development lab, qualitatively on a par with all of our SAP Labs facilities worldwide," said Peter Zencke, the SAP executive board member with responsibility for SAP Labs worldwide, in a press statement.
He said the facility is already developing products for customers in Europe and the United States, and will take on "strategic development projects" assigned by SAP’s executive board.
The center helped develop products for small- and medium-sized businesses in China, including the recently launched SAP Business One, according to the statement.
SAP plans to continue its expansion in China, and the president of SAP Labs China, Shang-Ling Jui said the labs could strengthen SAP’s competitive edge in the China market.
"The scope of work we have already accomplished underscores that this will be the case for installations of all sizes and in all industries," he said in a statement.
SAP already has a range of Chinese company clients, such as Lenovo, Haier, Sinopec, Cosco, the Minsheng Bank and the FAW Group Corp.
Jui also said that SAP is looking for local partners in Linux, with some talks on-going, but no details were given, according to a People's Daily report.
Peter Zencke said that the company will invest around US$11.8 million annually in SAP Labs China, the report added.
SAP was reported recently to be planning to invest US$120 million in its India business as well, with the aim of tripling business in India within three years.
The new SAP Labs facility in Bangalore is the largest for SAP in the Asia-Pacific. The campus, located at Whitefield, Bangalore, will eventually house a staff of 1,100, according to a statement from SAP.
The focus of the cener will be global research and development for products and services introduced to SAP customers in India and other markets worldwide.
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