German Software Powerhouse SAP to Localize in Russia to Keep Big Contracts

The Russian division of SAP, one of the world's largest software companies, proposed an investment agreement to the Russian Ministry of Communications and the Ministry of Industry, but the company is committed to investing in technology development and creating new jobs in the country by partially localizing work processes.

MOSCOW (Sputnik) — German software giant SAP is committed to investing in technology development and creating more jobs in Russia, in order to preserve its contracts in the Russian public sector, Russian newspaper Kommersant said Friday.

The Russian division of SAP, one of the world's largest software companies, proposed an investment agreement to the Russian Ministry of Communications and the Ministry of Industry, a SAP source told Kommersant.

According to the agreement, the company is committed to investing in technology development and creating new jobs in the country by partially localizing work processes.

In 2013, SAP earned more than 5 billion rubles ($83,5 million) from public contracts in Russia, occupying second place in terms of revenue behind Microsoft.

At the end of February, the Russian Ministry of Communications developed a project that limits government purchase of foreign software. The ministry intends to establish a register of domestic software and oblige state companies to buy software exclusively from that list.

If the registry lacks necessary software or if the software does not fit certain criteria, organizations will be able to purchase foreign alternatives, provided they submit a written justification.