ServiceNow's India R&D Hub Central to Global Innovation Strategy
In a significant revelation, Amit Zavery, president and chief product officer of ServiceNow, has highlighted that nearly 50% of the company's global research and development (R&D) operations are based in India. This positions the country as a cornerstone of ServiceNow's innovation strategy, underscoring its growing importance in the tech landscape.
India's Expanding Footprint in ServiceNow's Global Operations
Speaking exclusively to TOI on the sidelines of the India AI Impact Summit 2026, Zavery emphasized that the Hyderabad and Bengaluru centers constitute ServiceNow's largest operational footprint outside the United States. The company employs approximately 6,000 professionals in India, which translates to roughly one in five of its engineers worldwide. Over the past three years, the India Technology & Business Center has experienced a robust compound annual growth rate (CAGR) of 25%, reflecting rapid expansion and investment in the region.
Pivotal Role in Core Development and AI Advancements
India plays a critical role in driving core development across multiple key areas for ServiceNow. This includes the AI platform, security measures, customer relationship management (CRM) systems, and emerging technological capabilities. Additionally, Indian teams are at the forefront of advancing conversational interfaces and enhancing user experience, contributing to the company's competitive edge in the market.
Market Context and Investor Concerns
ServiceNow, with a market capitalization exceeding $111 billion and annual revenue of about $13 billion, recently faced a stock sell-off. This was triggered by investor anxieties that large language models (LLMs) could potentially disrupt its business model, impacting future growth and profit margins. Despite these market fluctuations, Zavery remains confident and unfazed by the short-term volatility.
Zavery's Perspective on AI and Market Reactions
"Markets often overreact to short-term signals, but they rarely reflect long-term potential," Zavery stated. He compared AI to transformative technologies like the internet or cloud computing, noting that while there will be winners and laggards, integration is paramount. "We combine AI, data, workflow, and security into a single platform—something no other company offers at this scale," he added, as ServiceNow targets an addressable market surpassing $600 billion.
Redefining ServiceNow's Identity in the Tech Ecosystem
Zavery further clarified that ServiceNow should be viewed as a platform company rather than a traditional Software-as-a-Service (SaaS) provider. He addressed concerns about LLMs, stating, "LLMs are useless for enterprises mainly because they do not have context, security, compliance, and workflow." This perspective reinforces ServiceNow's unique value proposition in integrating essential enterprise needs into its offerings.
The strategic focus on India not only boosts local employment and technological advancement but also solidifies ServiceNow's global standing as a leader in AI-driven solutions. As the company continues to innovate, its Indian R&D hub is set to play an increasingly vital role in shaping the future of enterprise technology.
