Indian enterprises are navigating a decisive moment in regulation, says Sindhu Gangadharan, MD of SAP Labs India and chairperson of Nasscom. In a conversation with Ayanti Bera, she explains how the new labour codes won’t disrupt hiring in the IT sector and how domestic firms have been proactive on data privacy, sovereignty, and are ahead of the curve in adopting AI. Excerpts:
Q. As Nasscom chairperson, how do you see the new labour codes impacting IT hiring and wages?
A. The industry has always believed in fair wages for the right roles. The new labour codes won’t significantly disrupt hiring. The focus remains on skilling and ensuring the workforce is future-ready. Nasscom is working with academia and government to align skills with industry needs.
Q. After the DPDP Act, how have Indian clients approached data privacy and AI governance?
A. Indian enterprises have been proactive. We recently released the SAP Value of AI Report 2025, which found that 93% of Indian customers expect ROI gains from AI in the next three years, far higher than the global average. We’ve also launched a sovereign cloud for India, which ensures data privacy and sovereignty for sensitive verticals.
Sindhu on incorporation of AI
Q. SAP has been embedding AI across its suite of business applications. How has that evolved this year?
A. Our core strategy at SAP revolves around business AI, and as we’re embedding AI deeply across core processes, the value realisation of AI is becoming a lot easier for our customers. Take Mahindra & Mahindra, for instance. They’re using AI to convert audio signals into text for service technicians, helping improve predictive maintenance and asset up-time. In pharma, AI helps companies quickly identify alternate components in vaccine manufacturing when supply chain disruptions occur. Henkel has automated its entire dispute management process with SAP Business AI, cutting short months-long workflows.
Which sectors are leading the AI adoption race?
Q. Which sectors are leading in AI adoption?
A. We’re seeing strong momentum in manufacturing, automotive, and other asset-heavy industries, where large data sets enable high-accuracy model training, sometimes exceeding 95%. For example, our conversational agent in the SAP commerce cloud helps shoppers find complementary products instantly, improving engagement and conversion. HR is another area where goal planning and performance management are now AI-assisted.
Q. Which of these sectors has shown the fastest ROI gains?
A. Customer experience-led use cases, across retail, automotive, and utilities, have the quickest ROI because they’re highly visible and data-rich. Predictive maintenance and service technician use cases also deliver quick payback, cutting downtime and improving efficiency.
Q. Why do Indian enterprises expect faster ROI from AI than global peers?
A. India has struck the right balance between innovation and regulation. Some countries are overly focused on compliance, while others are on unregulated innovation. India sits in the middle, encouraging innovation while maintaining regulatory safeguards. That balance is driving faster adoption and measurable ROI here.
Q. What about SAP’s own hiring strategy?
A. Our focus is on strategic realignment, doubling down on business AI and related domains. We continue to hire for roles in data science, AI/ML engineering, AI Ops, and DevSecOps, even if we pause hiring in others. On average, SAP’s R&D headcount in India grows by about 1,500 employees a year, and we’ll continue on that trajectory. At present, our total workforce here is around 17,000.