Saquib Ahmad, Managing Director of SAP Pakistan, believes the country’s small and medium-sized enterprises (SMEs) hold immense potential. This optimism stems from the impressive 30% average growth rate Pakistani businesses have achieved over the past five years.
“We identified Pakistan as a key growth market in 2017 and have significantly expanded our presence here ever since,” Ahmad told Business Recorder.
SAP, a German multinational and leader in enterprise resource planning (ERP) software, offers solutions that streamline data processing and information flow within companies. Founded in 1972, SAP has grown from a startup to a global corporation with over 105,000 employees and boasts roughly 15 partners in Pakistan with teams dedicated to providing SAP ERP services to clients.
The company’s client list in Pakistan is impressive, spanning both public and private sectors. Public sector clients include the Ministry of Finance, Auditor General of Pakistan, and National Transmission & Despatch Company (NTDC), while private sector users include Honda Atlas, Indus Motor Company, National Foods, and Engro. Even hypermarket chain Imtiaz Stores utilizes SAP software.
“The extent of SAP usage varies,” explains Ahmad. “Some companies have fully integrated their operations with SAP, while others leverage it for specific tasks.”
Ahmad remains confident in the long-term success of the SME sector. “SME entrepreneurs are sharp and understand their customers’ needs,” he emphasizes. “They know what they require from us.”
He credits SAP’s significant growth in Pakistan (roughly 70% market share in ERP software) to the country’s strong entrepreneurial spirit. While Ahmad refrained from disclosing SAP Pakistan’s profitability, he acknowledged competition from companies like Oracle and Microsoft.
Since recognizing Pakistan’s high-growth potential in 2017, SAP has seen its operations flourish under Ahmad’s leadership. The company experienced an over 30% growth surge, partly fueled by the COVID-19 pandemic.
This period saw a rise in demand from the SME sector, with even restaurants and retail establishments utilizing SAP to optimize their systems and drive growth. “SAP empowers SMEs to scale efficiently and strategically,” says Ahmad. “We can help them identify areas or branches with higher sales potential, allowing them to focus on those segments.”
According to Ahmad, the pandemic has underscored the importance of digitization for SMEs. “Industry priorities evolve over time,” he concludes. “Investor caution increases in challenging economic environments like Pakistan’s, making digitization even more crucial for SMEs to navigate and thrive.”
