German software giant SAP has inaugurated its new campus in Bengaluru, marking a major milestone in its global expansion strategy and reinforcing India’s position as a key innovation engine. Dubbed the India Innovation Park, the 41-acre facility in Devanahalli is now SAP’s second-largest research and development centre outside Germany and is poised to become a hub for co-innovation in artificial intelligence, cloud services, and enterprise technologies.
Massive R&D Campus Near Airport to Host 14,000 Employees
The new campus is strategically located in North Bengaluru, close to the city’s international airport. Phase one of the project spans 27 acres and is already operational, housing 3,200 employees. An additional 4,500 are expected to relocate to the campus shortly. Once fully built, the site will accommodate up to 14,000 professionals.
Construction of phase two has received approval and is set to begin soon, with completion targeted by mid to late 2028. The total investment in the new facility exceeds €194 million. This is SAP’s second campus in Bengaluru, after its existing facility in Whitefield.
Focus on Co-Innovation and Industry Collaboration
Speaking at the inauguration, Sindhu Gangadharan, Managing Director of SAP Labs India and Head of Customer Innovation Services at SAP, said the new facility would serve as a focal point for collaborative innovation. “This park is designed to bring together our customers, partners, academia, startups, and communities. It’s truly the heart of co-innovation,” she noted, addressing employees, partners, and government officials.
Bengaluru Emerges as Global Tech Powerhouse
SAP’s expansion is the latest in a wave of global tech companies boosting their footprint in India’s technology capital. Earlier this year, Google launched a new campus in Bengaluru, and Microsoft is building its largest R&D facility in Noida. The city has cemented its place as the world’s fourth-largest technology cluster, following Silicon Valley, Boston, and London.
According to a Nasscom–Zinnov report, India is home to a rapidly growing number of Global Capability Centers (GCCs), which have evolved from outsourcing hubs into strategic operations centres handling IT, automation, and manufacturing. Bengaluru alone houses 875 GCCs, employing 34% of India’s GCC workforce. The sector’s market value is projected to grow from $64.6 billion in FY24 to as much as $105 billion by 2030.
India a Key Pillar in SAP’s Global Strategy
India plays a central role in SAP’s global R&D ecosystem, with over 17,000 employees across Bengaluru, Pune, Mumbai, Hyderabad, and Delhi. Remarkably, over 40% of SAP’s global R&D workforce is based in India.
The company, founded 53 years ago in Germany, serves more than 440,000 customers globally — including 98 of the world’s 100 largest companies. According to SAP, its clients contribute to over 80% of global commerce.
SAP Eyes Growth in Cloud and AI Solutions
SAP has recently emerged as Europe’s most valuable publicly listed company, overtaking LVMH and Novo Nordisk in market capitalisation. The surge reflects SAP’s successful pivot to cloud-based services and its growing emphasis on artificial intelligence to drive business efficiency.
Today, the company derives the bulk of its revenue from cloud services and offers a wide suite of enterprise products, including analytics, supply chain management, and expense management solutions.
