AI at the Center of IT Investment: SAP Labs India’s Innovation Push and the Future of Tech Talent

AI is central to IT investments, driving innovation in business processes and products. SAP's new Bengaluru campus boosts talent and R&D, supporting India's $300B IT goal.

Categorized in: AI News Management
Published on: Aug 07, 2025
AI at the Center of IT Investment: SAP Labs India’s Innovation Push and the Future of Tech Talent

AI at the Core of IT Industry Investments

Sindhu Gangadharan, managing director of SAP Labs India and chairperson of Nasscom, highlights that artificial intelligence (AI) is central to current investment strategies across business process management and product development. She emphasizes that intelligent systems enabling quick adaptation are vital in a market influenced by tariff changes.

"Whether it's business processes, services, or products, AI is the uncontested focus of investments," Gangadharan states.

India's Role as a Strategic Innovation Hub for SAP

SAP recently launched a new 41-acre campus in Devanahalli, Bengaluru, marking its second major facility in the city and one of the company’s largest worldwide. This facility is designed to host up to 15,000 professionals with a total investment of 194 million euros.

India accounts for approximately 40% of SAP’s global R&D resources. The entire product portfolio is developed here, underscoring the country’s strategic importance. Gangadharan points out that this campus reflects SAP’s commitment to talent, customer focus, and the surrounding ecosystem.

Business Outcomes Driven by AI

AI advancements are changing how productivity gains translate into customer benefits. With 87% of global business transactions touching SAP systems, the scope of use cases is vast. For instance, 8 out of 10 cars on Indian roads are manufactured by SAP’s customers, illustrating the scale of critical business processes SAP supports.

Investing in the new Bengaluru campus aligns with SAP’s focus on innovation and talent acquisition. AI-driven automation increases productivity, and clients expect clear insights into how these gains affect their operations.

Industry Realignments and Talent Reskilling

Gangadharan notes ongoing strategic shifts within the IT industry, with AI investments shaping core portfolios in services and products. These adjustments are viewed as healthy and necessary to meet evolving demands.

Regarding concerns about layoffs linked to AI automation, she explains that while AI can generate a significant portion of code, this creates opportunities for employees to reskill and transition into new roles. Nasscom is actively supporting initiatives that bridge industry, academia, and government to prepare young talent with relevant skills and mindsets.

  • Focus areas include reskilling programs and collaboration to ensure workforce readiness.
  • Emphasis is placed on equipping professionals to take on evolving roles shaped by AI integration.

Looking Ahead

The Indian IT industry is on track to reach its $300 billion target by FY26 despite trade uncertainties. With AI at the center of investment and innovation, companies like SAP are expanding infrastructure and talent pools to support this growth.

For professionals interested in advancing their AI skills, exploring targeted training and certification can provide a competitive edge. Resources such as Complete AI Training's latest courses offer practical pathways to build expertise aligned with industry demands.


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