Saturday, July 23, 2011

Dell to expand services business


Original









Global PC giant Dell is in the midst of a billion dollar makeover from a PC company to an enterprise solutions vendor.

In an exclusive interview to NDTV, CFO Brian Gladden says India will play a major role in this transformation especially in the $8 billion services business.

World's second largest computer maker Dell already has significant presence in the Indian market. Now, armed with a $1.1 billion makeover budget, it is now looking to transform itself into a services company. Its services business in India will be spearheaded by former Wipro CEO Suresh Vaswani.

Dell's enterprise solutions and services business is now a high-growth unit at $18 billion of which services is about $8 billion. Post the $3.9 billion acquisition of Perot Systems, Dell is actively pursuing acquisitions to grow the IT services business now through geographic expansion. Dell's annual revenues from India are close to $2 billion and its headcount for India has touched the 25000 mark.

Despite the low margins in personal computers and its recent foray into smartphones and tablets, Dell does not see the end of the desktop era anytime soon.


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