The globe is evolving in the following era of globalization, SAP CEO stated

January 19, 2023: The CEO of German tech firm SAP stated that the world is entering the next era of globalization, and he’s mainly optimistic about technology’s outlook despite challenges posed by higher interest prices and supply chain disruptions.

“We are entering, from my view, the next phase of globalization,” SAP chief Christian Klein stated at the Globe Economic Forum in Davos, Switzerland.

Klein said that in this time of change, the firm would want to shift its focus toward building resilient supply chains and its sustainability credentials.

He further said that companies are coming together to help their supply chains and tackle corporate responsibility issues by using better data.

Supply chains are challenged by a confluence of factors, not the Covid pandemic. Lockdowns caused significant disruptions to economic output and highlighted a dependency on China for trade.

The Ukraine-Russia war compounded those problems, as Russia is a huge supplier of oil and gas, and Ukraine is the source of vital exports related to food, agriculture, and industry. That has led to upheavals in supply chains and higher prices for consumers and businesses worldwide.

Sanctions on Russia, therefore, led the firm to rethink where they base their operations, including SAP.

Despite that, Klein said he is optimistic about the path ahead.

“In the tech sector, we at SAP are very confident regarding the year ahead,” Klein said.

Reflecting on the sad state of macroeconomic views, he stated that there are cutbacks in tech and the broader economy and that CEOs of significant enterprises are evolving to be increasingly cautious about spending.

There have been waves of layoffs in tech at the likes of Amazon as higher prices and fears of a slump force them to be more prudent in spending.

“We had for very long-time negative interest rates,” said Klein. That has changed in Europe and the U.S., with the Federal Reserve, European Central Bank and Bank of England increasing interest rates to tame soaring inflation.