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Tuesday, November 8, 2011

Everything about Dell's BIG plans for India

By: Rediff Business
Source: http://www.rediff.com


He's hardly 15 weeks into his new job as executive vice-president of the applications and business process outsourcing (BPO) division of Dell Services in India, but Suresh Vaswani exudes confidence when talking about his new assignment.

Vaswani - also chairman of Dell India - has to build next-generation service offerings while simultaneously growing Dell's process capabilities across multiple industry verticals and market segments.

"It's early days but you can already sense that the services thrust has become very important to Dell," he asserts.

It's a tall order. Dell, which, according to industry estimates, has a revenue of nearly $2 billion in India, has been historically perceived as a technology company.

Vaswani, however, is no stranger to the services business, having been co-CEO of Wipro's IT business and an executive director on the board of Wipro before taking up this new job.

The shift at Dell took place around three years back, when it announced the acquisition of Perot Systems (rechristened Dell Services) for $3.9 billion, and heralded the company's foray into the services arena which was dominated by rivals IBM and Hewlett Packard (HP).

Till then, the slightly over $60 billion company was primarily known for its personal computer (PC) and hardware prowess, besides being the poster boy for supply chain practices with its direct sales model.

This April, Dell India simply reinforced this thrust on services when it put Vaswani at the helm of affairs of a company that is working hard to convince clients that it's much more than a technology products company.

"We have a leading position in the healthcare segment (because of Perot) and strong in the government and education verticals in the US. We also have a reasonable presence in banking, manufacturing and distribution," points out Vaswani, adding that "going forward, we will also sharpen our focus on applications and the business process outsourcing (BPO) space to give us a complete IT solutions' branding".

To achieve his objectives, the chairman of Dell India has a blueprint that spans across organic and inorganic (acquisitions) growth opportunities besides capitalising on Dell's "existing solutions for clients".

Inorganic growth, for instance, has been one of Dell's major strengths. In the last 12 years, it has made around 20 acquisitions - eight of which were done in the last two years. The names include Perot, KACE Networks, Exanet, Boomi, Compellent, SecureWorks and Force10.

"These acquisitions have been done to acquire technology, and not for market share," adds Vikas Bhonsle, general manager, public & large enterprise business of Dell India.

"We will continue to look at acquisitions in specific verticals. These will include intellectual property or large captive centres of customers. We will do acquisitions to strengthen our presence, especially in applications and BPO. We are looking at India-based global organisations," adds Vaswani.

On the organic front, Dell itself  "is a very large customer" for Vaswani's unit. However, Vaswani is not interested in playing the domestic BPO card.

"India is a strategic market for us, and one of the main reasons is that it is an evolving market for the services business. India also has a very good resource base for us in terms of talent. With a 23,000-member team, it has the second largest workforce of Dell outside the US. For our BPO business, India will continue as a delivery centre for global customers," explains Vaswani.

"Earlier, we had a lot of applications and BPO work in multiple places. These have been consolidated under one entity which has helped us enhance our internal delivery capabilities," says Vaswani who is also creating vertical business units such as healthcare (including consulting), manufacturing, retail, and commercial (including education and governments).

Dell India has also created horizontal capabilities which include Application Development & Maintenance, Application Support, Packaging & Implementation, Business Intelligence and the Global Delivery Model.

"Future delivery models include software as a service and cloud computing," says Vaswani. Cloud computing, he explains, is the "cornerstone" of Dell's strategy. "We have heavily invested in cloud integration capabilities for large and mid-sized companies," he adds.

Strong point

Dell India's services thrust is complementary to its hardware business. "All our clients need technology solutions. And all our solutions are centred at our PC base, workstations, printing etc.," points out Mahesh Bhalla, executive director and general manager for consumer & small medium business (CSMB).

Source: http://www.rediff.com/business/slide-show/slide-show-1-tech-everything-about-dells-big-plans-for-india/20110905.htm

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