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Dell sets up unit for govt, education buyers
PC Maker Creates Specialised Product Portfolio for the $500-M Market Growing 50% A Year
PC maker Dell India has set up a new dedicated division and created a specialised product portfolio to tap the $500-million government and education market in the country
“We have formed a new vertical — government and education— to win businesses in the government, public sector enterprises and higher education space. We have also readied the product portfolio, including a full range of laptops and notebooks, X86 servers and projectors. Our Chennai plant, which is on track, would further add to our competitiveness in catering to this market,” said Dell India country head Rajan Anandan.
The government and education market is growing at a CAGR of 50%. According to industry estimates, government and public sector enterprises would account for 20% share of the domestic PC market.
“There is greater IT implementation in PSUs now, the defence IT expenditure is also rising and with the e-governance initiatives taking shape across the country, we see great opportunity in the market,” added Mr. Anandan.
Dell has started providing its products including PCs and servers to the Indian Railways, the Tamil Nadu government undertaking, Elcot and Union Bank of India, it is now looking at enhancing presence in the market and tying up with national and regional system integrators for installation.
The Rs 2,000-crore Dell India witnessed a growth in revenues of over 50% and volume growth of 70%in2006. “While large IT/ITeS companies will continue to provide the largest chunk to our revenues, we have been steadily expanding into other areas. Two quarters ago, we entered the home and small business space. The government and education space is the next opportunity,” said Mr. Anandan.
Dell recently inaugurated its R&D centre in Bangalore, its largest outside its main Austin facility, and a centre of excellence for Dell’s enterprise solutions and products.
According to IDC figures, the domestic IT market docked revenues of Rs 61,761 crore in 2006 and is expected to touch Rs 116177 crore by 2010.
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