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By Alorie Gilbert, 11 April 2003 08:53

NEWS SAP reportedly plans to spend $120m over the next three years on growing its business in India, a move that puts it among an increasing number of high-tech companies building up operations in Asia. The Walldorf, Germany-based software company plans to direct the funds primarily toward marketing and sales initiatives, with the intention of tripling business in India over the next three years, according to a report this week in Indian business magazine The Financial Express. The report extensively quotes Alan Sedghi, the president and managing director of SAP's Indian subsidiary. An SAP representative was unable to immediately confirm the report but said India is an important market for the company. SAP reported sales of $16.2m in the country last year, a relatively small portion of its total revenue of more than $7bn. The software provider is among a growing number of high-tech companies that are expanding their marketing and development efforts in India and other Asian countries. Rivals Oracle and JD Edwards have each announced plans in the past year to increase their software engineering staff in India. In addition, EDS, HP and IBM have increased their presence there in a move to cut costs by tapping the country's cheap, well-educated IT workforce. SAP, which officially set up shop in India in 1996, also has a software development centre there that employs more than 500 people. Opened in 1998, it's one of six such centres around the world. The company plans to increase its Indian development staff by several hundred this year and is in the process of moving to a 15-acre campus that can house up to 1,000, according to SAP's website. The software provider's investment in its Indian sales staff indicates that high-tech companies see the country as an opportunity to generate revenue as well as cut development costs. When Oracle unveiled plans last year to hire 2,000 engineers in Bangalore and Hyderabad, India, an Oracle executive said the company sold more call centre software in India than in the rest of Asia-Pacific combined. Many American firms have outsourced call centre operations to Indian companies in a similar effort to cut costs, so it's logical that India is a growing market for such software. SAP and Oracle both compete in the call centre software market. In a push to increase sales in India, SAP plans to double the size of its sales and support staff in the country from 100 to 200 people and open new offices there, according to the Financial Express report. SAP, which sells business management applications for accounting, manufacturing and other corporate functions, is also considering acquiring technology companies in India, the report said. Alorie Gilbert writes for CNET News.com.