Posted on 03/20/2006 7:22:45 AM PST by CarrotAndStick
The No. 1 computer maker in the world will double headcount in India in the next three years.
Dell CEO Michael Dell said Monday the company would employ 20,000 people in India in the next three years, doubling the current headcount of 10,000.
A small portion of the new employees, or about 300, will be on the R&D team, doubling the current 300-strong division. They will be based in Bangalore, designing and finding solutions for servers and storage equipment.
“We found that the R&D team was designing patentable stuff, so we decided to extend their scope from just software to hardware too,” said Mr. Dell at a press conference in Bangalore. He said the India center had filed for 145 invention disclosures last year.
Dell has four contact centers in India and is in the process of building its own campuses in various locations.
The Round Rock, Texas-based company also plans to set up a manufacturing plant for PCs in India and is in talks with several state governments, negotiating incentives and infrastructure guarantees.
Focusing on Enterprise
In India, Dell’s PC and server sales are concentrated on the enterprise customer.
“Except in the U.S., only 15 percent of our revenues come from consumers,” said Mr. Dell. “Our focus will continue to be on the enterprise in India.”
That may change once the manufacturing facility is built, he added. It will enable Dell to cater to customers at all price points, not just those wanting bare-bones computers.
Mr. Dell declined to discuss profitability, and at a gathering of CEOs also refused to be drawn into a debate about Lenovo, Dell’s new rival.
“We manufacture in China as well,” was all he would say.
PC sales in India have traditionally been slow, with consumers reluctant to buy machines that cost more than $1,500. But a spate of low-cost PCs from local manufacturers hit the market in 2005, pushing sales to about 5 million units, up from less than 3 million in the previous year.
“In every market in India, you see the hockey-stick effect,” said Vinay Deshpande, chief executive of Encore Software, the Indian company that makes a version of the low-cost handheld Simputer. “Once you cross the downward curve, sales rise exponentially. The PC market will witness explosive growth in the coming years.”
Don't ignore a course in Spanish as a second language. Or Chinese, if you're a long-term thinker.
Why don't we just kick these damn companies out of here...let them go to india and then tariff the $hit out of their products when they attempt to do business here...
Agreed.
After 4 Dell computers, I was already through with them. Quality had gradually decreased, tech support is apparently located in some outpost in Bangladesh, and now they seem to want to outsource everything else. Goodbye, Dell; enjoy Calcutta.
As far as I can see, neither of our two remaining automakers is doing particularly well against Japan's automakers.
"Why don't we just kick these damn companies out of here...let them go to india and then tariff the $hit out of their products when they attempt to do business here..."
When all the companies have been outsourced who do you think will be paying those high tariffs for the products? American consumers of course.
Intel?
They have a plant in Vietnam, Israel, and all over Asia but they are also building a new plant in Ore.
Maybe he relocated south for the excellent employment opportunities! :-)
that's correct -- there's a huge growth happening out there and Dell wants to sell more comps in India (And china)
The probitive shipping and inventory costs alone make overseas manufacture of American computers difficult.
Typically - at least what I've seen - is that wherever Dell decides to put a plant, supporting plants (Intel for chips and boards, to name one) immediately spring up around it to supply their need.
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