Major Expansion to Meet Growing Global Demand
German IT major SAP is set to launch a new Centre of Excellence (CoE) in Bengaluru with a seating capacity of 15,000 by August 2025. The facility is being built to support the increasing business needs both globally and domestically, making it SAP’s second campus in Bengaluru.
“India is one of our largest development centers and we are opening a new facility later this year that has even more capacity,” said Muhammed Alam, Member of SAP’s Executive Board and Head of Product & Engineering, during SAP Sapphire 2025.
“Given its size, from a product engineering perspective, it is a very self-sufficient and decoupled environment,” he added.
Strategically Located 41-Acre Campus in Devanahalli
The new CoE will be located on a 41-acre greenfield site in Devanahalli, Bengaluru. According to Manish Prasad, SAP Indian Subcontinent President and Managing Director, the centre should be operational by July or August this year.
This facility aims to augment SAP’s engineering capabilities and address the growing demand for support services from both global and domestic clients.
SAP’s Strong Presence in India
Operating in India since 1998, SAP Labs India currently employs around 14,000 people across five cities: Bengaluru, Gurugram, Mumbai, Hyderabad, and Pune. It is SAP’s largest R&D location outside of its global headquarters in Walldorf, Germany.
SAP Labs India plays a critical role in AI innovation, contributing to solutions spanning S/4 HANA, HXM, and the sustainability suite.
India: A Growing Market Across Verticals
Prasad highlighted that India’s business growth aligns with SAP’s own expansion story, with significant progress across 25 business verticals including automobile, healthcare, and retail.
“Indian companies are adopting AI at a really fast pace. We are also tapping the mid-sized markets,” he noted.
Minimal Impact from Global Trade and Visa Issues
Commenting on geopolitical challenges, SAP CEO and Executive Board Chairman Christian Klein stated that trade and visa restrictions by the US have had minimal impact on operations. With multiple global campuses, including Palo Alto, the company has managed workforce transitions efficiently.
“We haven’t seen any delays in IT projects,” said Klein.
“However, there may be shifts in manufacturing, logistics, and supply chain dynamics—with more output expected from Indonesia than China going forward.”
Green Campus with a Focus on Sustainability and Wellness
The upcoming Bengaluru facility is being designed as a green campus, aimed at minimizing environmental impact while promoting employee wellness and inclusivity. Though SAP will continue with a hybrid working model, project-based teams will often collaborate in-person for engineering and support functions.
“It is going to augment engineering work for global clients and take care of growing need of support services for the domestic clients,” Prasad said.
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