Dell sees faster growth in India than China

Wednesday, 24 March 2010, 09:58 Hrs   |    2 Comments
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Dell sees faster growth in India than China
New Delhi: Global PC maker Dell sees huge potential in India as the country plays a significant role in the company's dramatic shift towards selling services to business clients after shaking off its singular dependence on direct sales of personal computers, reports the Economic Times. Michael Dell, the Founder of the $61-billion Dell, said, "The India operations are doing well. All businesses in India this quarter are growing more than 100 percent and the country offers enormous manufacturing opportunities."

"India is a great place to be in. It is growing faster than China for us," said the Founder. 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.

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 90-crore contract from Max Healthcare late last year.

The company 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 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 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, Dell said that 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 percent of the world's 4-billion mobile phone users have a smart phone.

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