Police are investigating the breach and Sage is probing the "unauthorised access" of data by someone using an "internal" company computer login.
The information was accessed at some point over the past few weeks.
It is unclear whether it was stolen from the FTSE-listed firm, or merely viewed, the BBC reported.
The company, which provides business software for accounting and payroll services to firms across 23 countries, including India, says it is taking the breach extremely seriously.
Sage has notified those businesses whose data may have been accessed and has advised them to look out for any unusual activity.
A Sage spokesperson said: "We are investigating unauthorised access to customer information using an internal login.
"We cannot comment further whilst we work with the authorities to investigate - but our customers remain our first priority and we are speaking directly with those affected."
Sage was founded in 1981 and now has more than 13,000 employees around the world.
If the ICO decides that Sage has been negligent there are a number of actions it could take, including criminal prosecution, non-criminal enforcement, or undertaking an audit at the firm, the BBC report said.
Sage Software Solutions Pvt Ltd is a top Enterprise Resource Planning (ERP), Customer Relationship Management (CRM) and Human Capital Management (HCM) provider in India. Headquartered in Mumbai, Sage Software Solutions boasts of a pan-India presence with offices in Chennai, Delhi and Bengaluru.
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