Siemens AG is set to significantly increase the share of software and digital services in its sales, aiming for a 20% target, with India playing a pivotal role, CEO Roland Busch shared in an interview with ET. The German conglomerate, already the world’s largest industrial software company, plans to shift its focus from traditional industrial and manufacturing operations to deep technology and core product development.
“India has traditionally been known for offshoring software and engineering products. Now, we’re looking at deeper technology and the development of core products,” Busch said. He emphasized that Siemens’ core value lies in its technological expertise.
Currently, Siemens’ software and digital business generates 6.5 billion euros in revenue out of the company’s total 75 billion euros. Although this segment is relatively smaller, it is experiencing rapid growth. “There’s still a way to go, but this part of the business is growing faster,” Busch noted.
Despite the rapid advancements in generative AI, Busch believes it won’t disrupt labor markets in countries like India. Instead, the focus will be on harnessing deep tech to innovate and develop core products, leveraging India’s strong software and engineering talent.
