Germany's SAP says India getting too expensive

30th January 2006, Comments 0 comments

30 January 2006, BERLIN - Europe's leading software company, SAP, plans to put the brakes on expansion in India in order to focus more on China and eastern Europe, the company's CEO Henning Kagermann said Monday.

30 January 2006

BERLIN - Europe's leading software company, SAP, plans to put the brakes on expansion in India in order to focus more on China and eastern Europe, the company's CEO Henning Kagermann said Monday.

"We have undertaken to only employ a set number of further (people) there and then to start looking at other locations," said Kagermann in remarks to the Financial Times Deutschland, the German edition of the global paper.

SAP had announced in 2003 that it planned to expand operations in India to make the country its second biggest software development centre in the world.

At present India has 3,000 SAP employees, after the U.S. with 6,000 and Germany with 14,000.

SAP, the world's leading company for business applications software, plans to expand operations in China, where it currently has 900 employees, and in eastern Europe.

Lower fluctuation rates for employees in China and eastern Europe were one reason for the decision, said Kagermann, adding that better infrastructure was an additional motive for the move.

DPA

Subject: German news

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