Public sector spending on software is particularly strong in the
Conceding that the
Cost-cutting played a big role in the company's profitability, according to Kagermann. SAP cut personnel, reduced the number of external consultants, trimmed travel costs and rationalized its facilities by combining locations, he said.
"Despite our hiring freeze, we have hired people for product development and in some select areas of sales," Kagermann said. "All hiring must be approved by the board, and although we will hire people, we will do so very selectively."
In 2003, SAP expects to continue to gain market share and increase profitability.
"Although it is very difficult to make a long-term forecast, I believe the IT industry will return to double-digit growth once the economic slump is over," Kagermann said.
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