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Compaq expands manufacturing capacity

Our Bureau

CHENNAI, Aug. 10

COMPAQ Computer India is expanding its hardware manufacturing capacity in the country. Speaking to newspersons at the launch of the company's latest Alpha server on Thursday, Mr. Balu Doraisamy, Managing Director, said: ``From being able to manufacture 1 0,000 units -- including PCs and servers -- a month, we will be expanding our capacity to 25,000 units a month.''

He added: ``This will entail an investment of Rs. 15 crores, in addition to allocation of funds for working capital.''

Further, after the demerger from the software business of Digital Equipment India, Compaq's Indian arm has invested Rs. 15-25 crores in it in the last 12 months, according to Mr. Doraisamy.

The company also plans to introduce the iPAQ, its pocket PC in the Indian market.

Mr. Doraisamy said, ``Internationally, manufacture of these appliances will begin in September. To find widespread acceptance, a backbone connectivity network should be in place.''

Compaq is to shortly introduce special keyboards for its home PC range such that, at the tap of a button on the board, the user is taken to a particular Web site. Mr. Doraisamy declined further comment on these two issues.

Citibank recently implemented an Alpha GS 160 solution for its credit card, banking, ATM, point-of-sale (POS) and its call-centre applications.

Mr. Ashish Sinha, Technology Head for Citibank's Global Consumer Bank, said, ``It is crucial for Citibank to be up and running all day, every day. We service 100,000 customers through our branches, 1.2 million credit card customers and our loan customers number 200,000. To satisfy customer needs and maintain critical data, we depend on technology.''

In India, Citibank primarily deploys Alpha's technology to drive its credit card business and customer interface functions such as call centres and ATMs.

Mr. Doraisamy said, ``The road-map for Alpha technology will eventually lead to a single server housing 256 chips in version EV8.''

Returns on investments

On how to measure returns on investment in information technology, since technology enables functions that were not possible before, which means comparisons between old and new systems are difficult.

Mr. Sinha said, ``It is very difficult to measure returns on investment dollar-to-dollar. But, technology is integral to Citibank's functioning and we do not look at it as a separate issue.''

He added: ``However, we do look at defects per million opportunities to commit mistakes (DPM). The cost of rectifying that defect and the resultant loss of customer satisfaction give us a fair idea. Further, increased revenues as a result of new IT initi atives also gives us some numbers as to returns.''