Can Dell dominate global services after acquisition?

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Bangalore: After the acquisition of Perot Systems, will Dell be able to enter into the global services space, which is currently dominated by strong rivals like HP and IBM? Analysts say that the deal is indicative of the changing market landscape and the way deals are happening especially in the large enterprise space. Dell has been actively working to build its services capability internationally in recent years. So far, Dell has not been in the reckoning for services and has been lagging behind in the space. This deal makes sense as huge growth is expected in services industry and even hardware deals are led by services. Kapil Dev Singh, Country Manager, IDC India said, "It is an attempt by Dell to catch up with the services story. But the integration is going to be challenging, as Dell itself is on an internal restructuring exercise globally. If the company wants to create a real impact in the services market, it has to move quickly." In the last few years, the role of services has changed dramatically in the global tech space. The importance of services, IT infrastructure and other software services, has been increasing in the recent past. Enterprises are looking at customized applications for their clients. Sudin Apte, Senior Analyst, Forrester Research said, "Convergence is happening among software, hardware and networking. The deal may not have any immediate implication on the Indian market for Dell or Perot Systems." Currently, Perot Systems employs over 23,000 people globally. It has 8,500 people in India in different facilities in Noida, Bangalore, Chennai, Coimbatore and Hyderabad. The company focuses on verticals like healthcare, telecom, manufacturing, government, BFSI, logistics, engineering services and business process outsourcing. Dell has 12,000 of its 78,900 employees in India, in four divisions, BPO, R&D, domestic sales and manufacturing.