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As expected (CI No 3,218), SAP AG’s SAP America Inc has established a new subsidiary in the US to concentrate on delivering its R/3 enterprise resource planning software to the public sector. SAP America Public Sector Inc will operate out of headquarters in Washington DC and will employ around 200 staff dealing with sales, services and support by the end of next year, although the business will be operational at some point in the first quarter of 1998. The company will deliver a version of R/3 tailored to the needs of the public sector, enabling budget management, financial accounting, materials management, human resources and controlling functionality. The intention behind the operation is to concentrate solely on bringing the software to governments, educational institutions and non-profit organizations. SAP seems particularly pleased with the fact that the new subsidiary will be operating from an office inside the Ronald Reagan Building and International Trade Center, which was built to house companies from around the world needing to open a government-to-business dialogue. SAP America Public Sector will be the largest private sector tenant in the building. SAP first revealed it would be establishing the division in August to strengthen its public sector business and earlier in the year bought a chunk of German company, IDS Prof Scheer GmbH, a business management software firm, with the intention of developing software components for the public sector (CI No 3,188).

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