SAP invests 4m euros to open consulting centre

Germany”s SAP company, the world”s biggest business software producer, plans to open a near-shore consulting centre in Romania, Wolfgang Runge, general manager of SAP for the EMEA region (over 50 countries of Europe, the Middle East and Africa), told ZF. More specifically, the specialists in the new centre, dubbed the “Delivery Centre”, are going to ensure the implementation of SAP projects in the EMEA region. Investments in the new centre will amount to approximately 4m euros by the end of 2007.

“We will normally start off with 20-30 employees; depending on how the centre progresses, that number will rise to 100 by the end of 2007,” specified Wolfgang. He added that investment would focus on training employees and facilities such as for them, such as laptops. There was a centre in India that had 200 employees, which was similar to the one due to be opened in Romania. “Romania was chosen as a location for the new centre because Romanians have a good understanding of IT and because they can speak many foreign languages,” specified Wolfgang.

The new centre will complement the one launched last year, which provides (in Europe) consulting and technical support services to any European bank that is a customer of SAP, with a view to implementing SAP software solutions or solving any technical problems at the customers” premises. The so-called “Banking Hub” has 10 employees at present, and their number is going to rise over the next 2-3 years to 40-50 people.

SAP owns software development centres in the region, in Hungary and Bulgaria. “Several years ago, we acquired a Bulgarian company and this is the reason why we opened the development centre in that country,” Wolfgang explained.

He does not rule out a possible acquisition in Romania, but for the time being SAP has not set its eyes on any Romanian company. For a company to prove interesting for SAP, it must either develop new technology, or be a SAP partner, delivering additional solutions to the ones the German company provides.

“The market of management software for Eastern European companies has an annual growth rate of approximately 30%, one of the highest rates in the world, almost as high as the rate seen in Asia,” specified Wolfgang.

Earlier this year, SAP Romania became a branch of the German company. Before that, the company”s operations in Romania were managed by SAP Austria. SAP Romania last year derived turnover worth approximately 12.5 million dollars (10 million euros). This year, the company”s officials estimate a market share of 30%, as well as 30% higher revenues. About 20% of SAP Romania”s revenues were derived from the banking sector. Other important economic sectors that invest in business software solutions are the utilities and the public sector (due to the EU requirements), as well as the telecommunications and oil sectors.