More job cuts are on the way at SAP as its systems integration arm plans to join the current merger mania in the sector with at least two acquisitions to fuel growth.
SAP CEO Officer Henning Kagermann told Germany's Focus Money magazine that the cuts will come on top of plans to bring projects back in house in order to save cost in a bid to increase return on sales by at least 1.5 per cent this year.
Meanwhile SAP’s services arm SAP Systems Integration AG (SAP SI) is reported to be in advanced acquisition talks with at least two companies in Europe and the US. Completion of the deals is likely to be announced in the second half of the year.
In the US the company is working on an acquisition to double its US revenues, while in Europe target companies are said to be those with around 50 employees operating in German-speaking areas of the continent.
SAP SI needs a boost. The company expects to see no organic growth in 2003. Revenues for the second quarter ended 30 June were down 8.4 per cent at 65.5 million euros. The downturn was most noticeable in the US, where sales fell 32.5 per cent to 6.6 million euros whereas in Germany the decline was 4.7 per cent.