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Business

Dell's growth strategy bodes well for India

By Our Staff Reporter

BANGALORE MARCH 19. Despite a global slowdown and pessimistic market sentiment, Dell Computers clocked a healthy 15 per cent growth as compared to a 5 per cent industry rate. Improved logistics and inventory, renewed thrust on the enterprise market of storage and servers and focus on emerging markets like India, China and Japan will enable the hardware leader to `` outgrow the industry rates even this year. And depending on analysts' predictions of a 2 per cent to 10 per cent hardware industry growth we will out-surpass this,'' remarked a buoyant Michael S. Dell, Chairman of the Board and Chief Executive Officer, Dell Computer Corporation.

In Bangalore to visit with the likes of Wipro and Infosys, Mr. Dell elaborated on the $32 billion hardware major's business strategy to leverage on India's capabilities in the software arena. The enormous opportunities presented by India in terms of market size and software manpower has encouraged Dell Computers to initiate a recruitment drive in the country.

``The immense expertise and quality of Indian software professionals will be utilised in Dell's IT development for its worlwide activities,'' Mr. Dell said.

The hardware manufacturer has mulled significant investments for its Indian operations, although statistics were not divulged.

Dell would ``commence fairly significant hiring to complement the offshore development activities for server and storage sectors,'' he added. Last year, Dell's Indian team had touched 800 personnel including software technical support for Dell's global R & D activities. Incidentally, 23 per cent of Dell's revenues were from its software services.

On recent reports of Dell's plans to tie-up with Wipro for contract manufacturing of PCs, the ``lack of semiconductors and component manufacturers in India is a deterrent to set up a manufacturing base in the country,'' observed Mr. Dell. According to Dell Computers' CEO, the visit to Wipro was not related to Dell's plans to embark on contract manufacturing in India.

To increase its share in the global IT sphere, Dell will zoom in on the enterprise market with more products in the storage and server segments, along with increased software services. ``As global markets move towards consolidation the Asia-Pacific region, India, Japan and China in particular will prove significant to Dell's growth,'' reiterated Mr. Dell.

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