Is Dell Going to Follow Suite to What Google is doing ?

Past few days there have been unconfirmed reports of DELL having talks with the Indian Prime Minister Mr. Manmohan Singh and discussed its intent to move from China into safer Markets. Apparently, DELL sees huge potential in India as the country is playing a dramatic shift towards selling services to business clients after shaking off its singular dependence on direct sales of personal computers, as per the Economic Times. Add to it the fact that India has showed proven growth in the recession when other states have not been able to (finger pointed to China).

The Indian Prime Minister, Manmohan Singh, was quoted in the Hindustan Times as saying he’d just met with Dell’s chairman, who would like to move all of their set-up to a country “with security of legal system”. They’ve currently got one factory in India already, so it might seem an obvious choice. Mr. Dell, the founder of Dell is quoted to be saying, “India is a great place to be in. It is growing faster than China for us”. Dell, whose return as CEO in 2007 redefined a hardware company that once championed the direct sales model, sees the Indian market helping its offshoot Dell International Services expand beyond technology and consulting services to healthcare, insurance and governance. In India, the company won a Rs. 90-crore contract from Max Healthcare late last year.

Dell generates annual revenues of nearly $1 billion and has a free cash flow of $4.6 billion from India. “Over the last three years, consumer, public sector and small medium businesses have been growing in India.” On India’s ambitious Unique ID (UID) project, Dell said that he is keen on participating, particularly on aspects such as how it can the used to deliver healthcare by storing patient records. The company is also eyeing the smart phone market. “There’s a huge market to be tapped out there if we go by the smart phone user base,” he said, adding that just 1.5 percent of the world’s 4-billion mobile phone users have a smart phone.

Everyone knows about the Google – China fight and Google to leave China soon. Well after that, GoDaddy the domain registration firm has mentioned that it will leave china as well. Now Dell. Could this be the beginning of a mass exodus. Might be, considering the famous Chinese legislation which might have companies manufacturing in China to provide their schematics

Via Gizmodo via HindustanTimes via SiliconIndia

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  1. Guess its a catch 22 for both..CHINA as well as the companies….they lose out on a big big market and China loses out on some really really good products and services!

      • misterjester
      • March 28th, 2010

      I think so as well, but seriously speaking I am somewhere happy that they might move to India.

      Lets hope they do …. China’s perspective, well they are reaping the fruits of their own deeds … First they invite people and now they are just making it difficult to be there …

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