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HR Zone » Human Resource Management » Dell upbeat about India, sees faster growth here than China...!!

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Dell upbeat about India, sees faster growth here than China...!!
Praveen
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Posted 26-03-2010Reply

Michael Dell, the founder of the $61-billion Dell, sees India playing a key part in the company’s dramatic shift towards selling services

to business clients after shaking off its singular dependence on direct sales of personal computers.



Mr Dell, whose return as CEO in 2007 redefined a hardware company that once championed the direct sales model, sees the Indian market helping its offshoot Dell International Services expand beyond technology and consulting services to healthcare, insurance and governance. “India is a great place to be in. It is growing faster than China for us,” Mr Dell told reporters on Tuesday.



Though the country accounts for only 2% of the company’s revenue, Mr Dell counts it among the top three key global markets. The company has 23,000 employees in India, about one-fourth of its global workforce. With a market share of nearly 13% here, a big chunk of Dell’s profits comes from servers, storage and services. “The India operations are doing well. All businesses in India this quarter are growing more than 100% and the country offers enormous manufacturing opportunities.”



Though some analysts have said the company has struggled to shed its sole dependence on direct sales of PCs to businesses, Dell remains upbeat about the future. It is counting on a resurgence in technology spending, having benefited immensely from rise in corporate spending just after the meltdown. “Reaching $60 billion organically was great. But, we found the strategy employed to reach here needed a relook and are now making progress in new areas,” said Mr Dell. The company, which is now also focusing on selling products to consumers at retail stores, is targeting segments such as infrastructure management, applications development migration, technology infrastructure consulting and systems integration.



Dell, which bought Perot Systems in 2009 for $3.9 billion to spearhead its services entry, sees growth coming both organically and through acquisitions of services companies. Since the acquisition, Dell International Services has chased over 80 contracts in the $20-50 million space across the globe. In India, the company won a Rs 90-crore contract from Max Healthcare late last year.



India, indeed, could be crucial to these plans. Mr Dell said the company will look at inorganic growth in the country. “The next billion could come from more broad-based segments. When we started off in India, we focused on the large enterprise segment.”



Dell generates annual revenues of nearly $1 billion and has a free cash flow of $4.6 billion from India. “Over the last three years, consumer, public sector and small medium businesses have been growing in India.” On India’s ambitious Unique ID (UID) project, Mr Dell said he is keen on participating, particularly on aspects such as how it can the used to deliver healthcare by storing patient records. The company is also eyeing the smart phone market. “There’s a huge market to be tapped out there if we go by the smart phone user base,” he said, adding that just 1.5% of the world’s 4-billion mobile phone users have a smart phone.



“There has been a real shift in the business with proliferation of devices,” he said. Dell offers smartphones in China, Brazil and the US.

Mr C K S
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  Rated 0 | Posted 26-03-2010

Hi
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