The multinational SAP is one of the veterans of the technology sector in Barcelona. The German company landed in Spain 35 years ago, accompanying the digitization process of compatriot companies in the demarcation, such as BASF or Bayer. Since then, SAP has expanded throughout the country and has maintained a strong commitment to the city. The general director in Spain, Félix Monedero, tells it in detail.
What activity takes place in Barcelona?
The city offices have always been dedicated to offering assisted sales support for SMEs. For 17 years they became a digital hub that supports more than 30 countries. Today they are a global benchmark within the group in terms of business practices.
How many digital hubs are there in total?
A total of 15, 2 of which are located in Europe – in Dublin and Walldorf (Germany) – and the rest are distributed between North America, South America and Asia.
They call them digital hub, does that mean that software is developed in these centers?
No. SAP technology is designed at sites in Germany, India, and the United States. In these digital hubs, support services are provided through technology. In addition, we have 30 innovation laboratories around the world.
Could one of them be installed in Barcelona?
I don’t think so, the closest one is located in the south of France.
So, what future opportunities does the Barcelona sales support headquarters have?
SAP is firmly committed to continue investing in the growth of the hub in the Catalan capital and in the automation of its functions.
What will be the investment?
We can’t reveal figures yet. We currently employ a total of 400 people of 40 different nationalities. And as I said, their work is a benchmark for the rest of the SME support centers in the world.
Does Barcelona also support local clients?
Yes, a total of 300 people deal with it, but precisely this activity has more prominence at the Madrid headquarters, which employs another 700 employees.
How would you define the activity of SAP in Spain?
In Spain, we support large companies and SMEs from all kinds of sectors. Retail, consumer and energy companies have a special role. We also work for public administrations.
How many clients do you have?
Our portfolio is made up of about 10,000 clients. We are satisfied with its degree of digitization. Although it lags behind German or British companies, it far exceeds the levels of its neighboring countries. We see that Spanish companies are early adopters of technology, that is, they join the advances of the market early.
Are European Next Generation Recovery Funds having an impact on your business?
Yes, indirectly, since we are providers of digitization projects. This is the case of the latest technological initiative of the Public State Employment Service, SEPE.
What is the business strategy?
75% of sales are carried out directly, especially when it comes to large clients, while 25% of technology is distributed through third parties.
How much does SAP invoice in Spain?
In 2022, we reached revenues of 555 million euros, which is around 1.5% of the group’s overall figure.
Does the figure evolve upwards or due to the macroeconomic situation does it recede?
Every year we grow. In 2022, revenue increased 9%. However, we have recently applied a change in business strategy that has slowed down the increases.
What change?
We now encourage pay-per-use software combined with a subscription to our service. We have removed the old licensing model.
What prospects for growth does the company have as it is already a mature company in the software sector?
We have an infinite possibility of creating digital products that complement and improve the customer experience. With a more digital economy, your needs grow.
In Spain, are you considering growing through acquisitions of other companies?
We don’t plan it, we never have. It is true that the group has another company, called Sapphire Ventures, which is dedicated to investing in startups. In Barcelona, ??I remember that the company financed Scytl, the electronic voting startup.
