Dell Plans to Double Staff in India
Reuters 20mar2006
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Dell, the world's top PC maker, plans to double its headcount in India over three years, its founder said on Monday, but there was no word on the location of a planned manufacturing unit in the country.
Dell said its staff numbers in India would rise to 20,000 over the next three years from about 10,000 now. Dell has set up huge business process outsourcing units to tap India's vast pool of low-cost English-speaking workers, as other multinationals such as General Electric have done.
"India produces over 200,000 engineers and we see that as an asset for our hardware and software activities," Chairman Michael Dell told reporters in India's technology capital, Bangalore.
Dell has used India as a base to serve global clients in recent years, but it now considers Asia's third-largest economy a growing market for desktops and laptops as demand for computers surges across the country.
Research firm IDC expects the Indian computer market to grow at a compounded annual growth rate of 23 percent until 2010.
In India, Dell competes with multinationals such as Hewlett-Packard and IBM and local giants HCL Infosystems and Wipro.
Dell, with about 4 percent of the Indian market, declined to give details on the upcoming PC manufacturing unit. But he added the firm was in discussions with various states for a suitable site and hoped to conclude them fairly soon.
"The kind of investments that have occurred in China, Taiwan, Singapore, we would really like to see this in India," Dell said.
"One of the real threshold events will be for the government to essentially decide to establish an industrial policy to create capital intensive manufacturing."
SemIndia, a consortium of overseas Indians, recently announced plans to set up its semiconductor chip-fabrication unit in Hyderabad, with technology from America's Advanced Micro Devices. The first phase of the project is to be implemented in three years' time with a $1 billion investment.
Paul-Henri Ferrand, Dell's vice president and general manager for South Asia, said the U.S. company's new Indian plant may even export to Eastern Europe depending on its capability.
"It might be more cost-effective to export it from India than from Ireland or from China," he said.
source: http://news.zdnet.com/2100-9584_22-6051393.html 22mar2006
Dell to double its workforce in India
KHALID HASAN / Daily Times (Pakistan) 22mar2006
WASHINGTON — American information technology companies appear to be making a beeline for India, the latest being Dell, the world’s largest laptop maker, which plans to double the number of its employees in India to 20,000 in three years.
According to company chairman Michael Dell, quoted on Monday by the Associated Press, although most of the new hiring will be made at the company’s call centres, there will also be substantial recruitment at the its product testing centre and a possible manufacturing plant.
The Round Rock, Texas-based company currently operates four call centres in India, a product testing centre for corporate customers and a global software development centre.
“We will double our staff from the current level over the next three years,” Dell told said during a visit to Bangalore. “There is a fantastic opportunity to attract talent (here),” he said. “We will ensure a major recruitment push in engineering talents.” The AP report said, “Scores of Western companies have been cutting costs by shifting software development, engineering design and routine office functions to countries such as India, where English-speaking workers are plentiful and wages are low. But Dell’s plans don’t appear to be limited to cost cutting, analysts said. They said Dell appears intent on increasing its share in India’s fast-growing market for computers. The company is also looking to set up a manufacturing centre in India, a move that could help boost the sale of Dell computers here.”
Dell has been discussing infrastructure and logistics with Indian state governments.
“India is a market in its own rights. A (manufacturing) facility like this will help Dell to be close to its customers not just in India, but South Asia,” said James McGregor, a Beijing-based economic analyst who monitors issues in India and China. There is a growing demand for computers in India. Currently, four million computers are sold in India every year which is miniscule in the country with a population of over one billion. The Indian government imposes higher import taxes on fully assembled computers than computer parts, and Dell currently ships complete computer sets to India. A domestic manufacturing facility would help the company avoid some taxes and boost its presence in India, where computer sales are expected to increase to 10 million annually over the next three to five years. Dell currently operates nine plants around the world, six of them outside the United States, according to AP.
source: http://www.dailytimes.com.pk/default.asp?page=2006%5C03%5C22%5Cstory_22-3-2006_pg7_14 22mar2006
Dell to Double Work Force in India
Wall Street Journal / AP 21mar2006
NEW DELHI — Dell Inc. plans to double the number of its employees in India to 20,000 in three years, Chairman Michael Dell said, in what appeared to be the personal-computer maker's bid to beef up its presence in one of the world's fastest-expanding markets.
Most of the new hiring will be made at the company's call centers, with substantial recruitment at its product-testing center and possibly a factory.
Dell operates four call centers in India as well as a product-testing center for corporate customers and a global center for software development. About 10,000 people work at these facilities.
"We will double our staff from the current level over the next three years," Mr. Dell said yesterday on a visit to Bangalore, India's information-technology hub. "There is a fantastic opportunity to attract talent" here. In January, the Round Rock, Texas, company said it planned to increase its staff in India to 15,000 during the next two years.
The company said that this year it was also looking to set up a manufacturing center in India, which may help increase sales of Dell computers in the country.
"We have been in discussions with a number of state governments in terms of infrastructure and logistics. We are yet to make a decision on the location of the plant," Mr. Dell said. He declined to give a time frame for a decision.
Scores of Western companies have been cutting costs by shifting software development, engineering design and routine office functions to countries such as India, where English-speaking workers are plentiful and wages are low.
Dell Chief Executive Kevin Rollins said during a trip to New Delhi this year that Dell's expansion plans in India weren't limited to tapping talent, because the company also wanted to benefit from the nation's rising demand for computers. Dell accounts for less than 4% of the four million computers sold each year in India, while the company's global market share is about 18%, Mr. Rollins said.
Indian taxes on computers and computer parts are a major factor, resulting in higher prices for Dell products and weak sales. The Indian government imposes higher import taxes on fully assembled computers than on computer parts; Dell currently ships complete computer sets to India.
Dell to Double Its Indian Workforce
Deutsche Presse-Agentur 21mar2006
New York - Dell Inc plans to double its workforce in India over the next three years to 20,000 and aims to raise its market share in the country, the US-based personal computer maker said Monday.
Dell currently has 10,000 workers in India and a market share of 4.5 per cent, compared with 10 per cent in Asia overall.
The expansion will not come at the expense of operations in other countries, spokesman Jeff Blackburn said.
'This does not at all qualify as outsourcing,' Blackburn told Deutsche Presse-Agentur dpa. 'We have a pretty narrow slice of the computer business in India right now and we hope to bring that market share up to the level we have in other countries.'
Dell shares rose 2.34 per cent Monday, closing at 29.76 dollars.
Other information technology companies, including Intel Corp and International Business Machines Corp (IBM) are taking advantage of India's low wages and highly skilled workforce to expand their businesses.
source: http://news.monstersandcritics.com/business/article_1148845.php/Personal_computer_maker_Dell_to_double_its_Indian_workforce 22mar2006
Dell to double size of its workforce in India to 20,000 over three years
Boston Globe / AP 21mar2006
NEW DELHI — Dell Inc. plans to double the number of its employees in India to 20,000 in three years, chairman Michael Dell said yesterday, in what appeared to be moves by the world's largest personal computer maker to beef up its presence in one of the world's fastest growing markets.
Although most of the new hiring will be made at call centers, there will also be substantial recruitment at Dell's product testing center and a possible manufacturing plant.
The Texas-based company currently operates four call centers in India, a product testing center for corporate customers, and a global software development center.
''We will double our staff from the current level over the next three years," Dell told reporters during a visit to Bangalore, India's technology hub. ''We will ensure a major recruitment push in engineering talents."
In Texas, however, a Dell spokesman said 10,000 is an optimistic number dependent on growth.
Scores of Western companies have been cutting costs by shifting software development, engineering design, and routine office functions to countries such as India, where English-speaking workers are plentiful and wages are low. But Dell says it is not reducing its workforce in the United States or elsewhere.
source: http://www.boston.com/business/technology/articles/2006/03/21/dell_to_double_size_of_its_workforce_in_india_to_20000_over_three_years/ 22mar2006
Dell to Double Its Staff in India by 2009
AP 20mar2006
Computer maker Dell Inc. plans to double the number of employees in India to 20,000 in three years, Chairman Michael Dell said Monday.
The Round Rock, Tex.-based company currently operates four call centers in India, a product testing center for corporate customers and a global software development center. Some 10,000 people work at these facilities.
"We will double our staff from the current level over the next three years," Dell told reporters during a visit to Bangalore, India's technology hub.
"There is a fantastic opportunity to attract talent (here)," he said. "We will ensure a major recruitment push in engineering talents."
Earlier this year, the company said it was also looking to set up a manufacturing center in India, a move that could help boost the sale of Dell computers in this Asian nation.
"We have been in discussions with a number of state governments in terms of infrastructure and logistics. We are yet to make a decision on the location of the plant," Dell said. He declined to give any timeframe for a decision.
Scores of Western companies have been cutting costs by shifting software development, engineering design and routine office functions to countries such as India, where English-speaking workers are plentiful and wages are low.
Earlier this year, on a trip to New Delhi, Dell's chief executive, Kevin Rollins, said his company's expansion plans in India were not limited to tapping talent, but that it also wanted to benefit from India's growing demand for computers.
Dell accounts for less than 4 percent of the 4 million computers sold annually in India, whereas the company's share in the global market is about 18 percent, he said.
Taxes levied by the Indian government on computers and computer parts are a major factor, resulting in higher prices for Dell products and sluggish sales. The Indian government imposes higher import taxes on fully assembled computers than computer parts, and Dell currently ships complete computer sets to India.
A domestic manufacturing facility would help the company avoid some taxes and boost its presence in India, where computer sales are expected to increase to 10 million annually over the next three to five years.
Dell currently operates nine plants around the world, six of them outside the United States.
source: http://news.yahoo.com/s/ap/20060320/ap_on_bi_ge/india_dell_4&printer=1;_ylt=AnCjqBxijoqXggxZb0WOytdv24cA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE- 22mar2006
Dell, you don't get it, do you?
RUSSELL SHAW / IP Telephony Blog / ZD Net 22mar2006
Yesterday during a visit to the outsourcing Ground Zero of Bangalore, India, Dell Inc. chairman Michael Dell announced it will double its India-based workforce from 10,000 to 20,000 within three years.
That's Michael Dell at the press conference.
"Dell has set up huge business process outsourcing units to tap India's vast pool of low-cost English-speaking workers, as other multinationals such as General Electric have done," Reuters notes.
Although the hiring effort will also boost Dell's in-country capacity to build products for the India market, an Associated Press article about the announcement points out that "most of the hiring will be made at the company's call centers."
Somewhere in this announcement is the calculation that the widely derided state of Dell's largely India-based consumer customer service isn't hurting business from just plain consumers like you and me. And if Dell can keep saving money by outsourcing customer service jobs overseas, well, the stock price is more important than customers.
After all, the institutional investors - the ones who clamor for higher and higher profit margins - are a far more significant constituency than the buying public, right?
source: http://blogs.zdnet.com/ip-telephony/?p=976 22mar2006
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