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Nov 01, 2008

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Hi Amit,

SAP has been instrumental in the software business to recognize the opportunities that BPO brings to them. BPO providers can only develop real utility across multiple clients if they can underpin common processes with common technology standards. To this end, SAP has built up a market development group of around 100 staff over the last 4 years under the leadership of Christian Baader:

http://fersht.typepad.com/the_outsourcing_bloghorse/2007/05/why_technology_.html

And the marketing / relationship skills of Gianni Giacomelli:

http://fersht.typepad.com/the_outsourcing_bloghorse/2007/06/why_a_good_bpo_.html

Oracle is following suit with a similar strategy, but SAP has been instrumental in recognizing the potential of BPO as a standardization opportunity for their platform.

Yes - these are tough times for the software business at large - as discretionary spend is thrown out the window, but there are encouraging signs that it isn't going to be as bad as we fear for the leading ERP providers. Turmoil, M&A, consolidation and divestitutres ultimately drive new investments in IT services, BPO and ERP backbones to support those dynamics, so we can expect to see investments in some areas,

Phil

I believe 2008 is almost over. Still waiting for report cards, but I believe, business was impacted pretty significantly as the uncertainty delayed sales closings throughout the year. Will SAP be significantly investing more in masterminding this platform based BPO move by global corporations? and if so, how? In fact who will do it for SAP?

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