SAP Expands Global Leadership in Human Resources Market with New Customer Momentum in Asia Pacific

Asia Pacific Companies Choose mySAP™ Human Resources to Streamline Enterprise-Wide
Collaboration and People Management and to Enhance Employee Efficiency and Productivity

SingaporeSAP AG (NYSE: SAP) today announced continued market momentum for mySAP™ Human Resources (mySAP HR) in the Asia Pacific region as the company expands its global market leadership in the human capital management (HCM) space. With more than 8,500 customers in 50 countries and deep domain knowledge gained in years of experience serving a variety of vertical industries, SAP is rapidly adding new customers to its list of more than 800 mySAP HR customers in Asia Pacific.

mySAP HR supports local languages, currencies, best practices and regulatory requirements in Asia Pacific countries including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand. A number of Asia Pacific companies have recently become mySAP HR customers to take advantage of this industry-leading localized functionality, including Bangko Sentral Ng Pilipinas (Philippines), Bank Niaga (Indonesia), BASF Korea (South Korea), Bharat Sanchar Nigam Ltd (India), China Merchants Bank (China), Continental Engineering Corp (Taiwan), Daewoo Shipbuilding and Marine Engineering (South Korea), Dongbu Steel (South Korea), Indus Ind Media and Communications (India), Land Bank of the Philippines (Philippines), Mangalore Chemicals Ltd (India), overseas subsidiaries of Samsung Electronics Corporation (South Korea), Singapore Polytechnic (Singapore), Siriraj Foundation (Thailand), SK Telecom (South Korea) and Tenaga Nasional Berhad (Malaysia).

A recent IDC report (Worldwide Human Resources Management and Payroll Processing Applications Market Forecast and Analysis, 2003-2007, July 2003-IDC Document #29803) cites SAP’s strengths in global HR automation capabilities for an array of industries and ranks SAP the number one vendor of human resources management and payroll processing applications in the Asia Pacific market. The new customer wins announced today further widen this leadership, with SAP already holding nearly twice the Asia Pacific market share as the number two player in the space.

“SAP continued to chalk up big wins largely due to the global applicability of its products,” said Albert Pang, Enterprise Applications Research Lead at IDC. “SAP’s strengths are in the global HR automation capabilities for an array of industries, and the ability to support the HR demands of more than 50 countries while at the same time integrating information and processes from diverse global offices in a single system.”

According to IDC (Worldwide Human Resources Management and Payroll Processing Applications Market Forecast and Analysis, 2003-2007, July 2003-IDC Document #29803), the human resources management and payroll processing applications market will expand at a compound annual growth rate (CAGR) of 5.6%, reaching $5.7 billion by 2007, compared with $4.3 billion in 2002. This high-potential market has been one of SAP’s key strategic growth areas, toward which the company has targeted many recent development efforts. Last year, SAP announced the delivery of automated, Web-based e-recruiting capabilities in mySAP HR to comprehensively cover and streamline key recruitment processes. SAP is soon launching the employee interaction center, leveraging SAP’s newly developed integrated communications interface (ICI) as well as the interaction center capabilities in mySAP™ Customer Relationship Management (mySAP CRM).

Indonesia-based Bank Niaga is implementing mySAP HR across the enterprise, leveraging employee self-services for 1,000 of its staff.

“We are optimistic that the SAP solution can help Niaga Bank in building a robust application system that is integrated to the entire banking operations,” said Andi Mohammad Hatta, IT & System Director of Bank Niaga. “With an integrated system, we are able to advance the company’s operational efficiency and therefore improve its productivity and global competitiveness.”

In today’s knowledge-based economy, companies need to fully leverage their human capital to sustain a competitive position. This requires integrating employee processes and information with business processes and strategies to achieve optimal business results. mySAP HR enables corporations to more effectively align employee and business objectives by deploying the right people to meet company goals quickly and efficiently. By combining these benefits with workforce analytics, mySAP HR enables managers to clearly demonstrate HR’s contribution to the bottom line.

“Our customers understand the strategic importance of human capital management and the value it delivers across the enterprise,” said Hans-Peter Klaey, president & CEO, SAP Asia Pacific. “SAP solutions enable HR teams to integrate with all business operations within the organization. mySAP HR helps companies focus on running efficient HR processes, people-centered strategic initiatives that proactively drive business success and impact the bottom line, thus delivering on the HR promise like no one else can.”