SAP banks on GST to expand client base in India

SAP, Europe's largest technology company, sees the implementation of goods and services tax (GST) and digitisation of the Indian economy as an opportunity to expand its client base in the country. 
SAP's client base in India grew to about 8,500 at the end of June quarter, compared with 7,000 a year earlier.The Germany based company, which is a market leader in enterprise application software, is transforming itself into a cloud-based service company from being a company dependent on costly upfront installations and licence fees. 
“The entire digitisation of the economy is doing two things. It is driving a lot of new customers, who are coming into the formal economy, and adopting new ERP systems. The existing customers like Indian conglomerates Tata Group and Mahindra Group are more innovation led. They are adopting to data analytics, cloud, Internet of Things,“ said Deb Deep Sengupta, managing director, SAP Indian Subcontinent. 
India implemented GST on July 1, which aims at harmonising all state and federal sales taxes and make the country a unified common market. Millions of firms in India are trying to comply with the technology-driven tax regime as the new system settles down. 
“Right now most of the prospects and customers are taking the compliance route to GST to make sure they file their returns on time. We believe that the next wave in the next 12-18 months will be when they start taking advantage of the single market -redesign their supply chain and logistics -as network, policy framework and regulations stabilise,“ said Sengupta. 
On Thursday, SAP announced the creation of a digital ecosystem with the SAP Leonardo portfolio exclusively for India. SAP is collaborating with technology companies in India to extend the platform system and initiatives across industries. SAP Leonardo is a collection of software and services that organisations can use to develop digital transformation applications.
Source :  The Economic Times

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