SAP Targets India's Tier 2 and 3 Markets Amid Rising AI Adoption

New Delhi, Apr 24 (KNN) Enterprise software giant SAP is intensifying its focus on India's Tier 2 and Tier 3 cities, including regions in Punjab, Uttar Pradesh, and Maharashtra. 

Leveraging a robust partner network, the company aims to tap into the growing demand for digital transformation among small and medium enterprises (SMEs) in these areas.

Rajeev Singh, Vice President and India Head of Corporate and Mid-Markets at SAP Indian Subcontinent, highlighted the rapid growth in these markets. 

"Tier 2 and 3 markets have grown very, very fast for us, and we’re seeing tremendous traction in these cities," Singh stated. He emphasised the role of local partners in reaching new customers and addressing their specific needs.

SMEs play a pivotal role in SAP India's revenue, contributing approximately 79 per cent. The company employs nearly 15,000 individuals in India, making it one of SAP's fastest-growing markets globally. 

Notably, India accounts for 40 per cent of SAP's research and development efforts and over 30 per cent of its patents.

Artificial intelligence (AI) adoption is a significant trend among Indian businesses. A recent SAP study revealed that 96 per cent of SME promoters are inclined toward holistic AI integration. 

In contrast, larger enterprises are adopting AI in a more segmented manner, focusing on specific business lines or verticals. 

Singh attributes this difference to organisational complexity, noting that SMEs, with their simpler structures, can implement AI strategies more comprehensively.

SAP's strategic expansion into these emerging markets underscores its commitment to supporting India's digital transformation journey, particularly among SMEs seeking to modernise their operations through advanced technologies like AI.

(KNN Bureau)