Dell facility in India this year

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New Delhi, Jan 30: Dell Inc on Monday announced a manufacturing unit in India, alongwith a BPO centre in Gurgaon, to be opened by April this year.

“The time is ripe to consider a manufacturing centre in India. We have come to a conclusion on India as a manufacturing base, but cannot announce the timeframe or location, as yet,” Dell president and CEO Kevin B Rollins told reporters here after a meeting with the Prime Minister.

The $68 billion Dell Computers has a global market share of 18% as compared to India (3-4%). In North America, Dell is the leader with a 32% market share.

“The India manufacturing plant will primarily focus on the growing Indian PC market. Factors like logistics, infrastructure and able workforce will decide the location of the plant,” Mr Rollins said.

Currently, Dell has nine manufacturing plants spread across US, China and Malaysia. On the BPO front, Mr Rollins said that there can be ’fluctuation in the percentage of third party vendors’ in its outsourcing model in India.It’s interesting to note that Dell awarded no new business to any third party BPO last year, as its captive centres are now in place.

With the newly launched Gurgaon facility, Dell will have four captive BPO units in India at Bangalore (5,000 employees), Hyderabad (3000) and Mohali (1800). The Gurgaon centre will hire upto 1,000 employees by 2006 and will begin hiring in March for positions at Gurgaon.