Adding Value, From Software To Hardware
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: Economic Times
Monday, 31st July 2007 was not only judgement day for Sanjay Dutt and the killers of Punjab Chief Minister Beant Singh, it was also the day when Dell’s first Made in India computer rolled off the conveyor belt of its newly established assembly line at Sriperumbudur, near Chennai. And, the lucky recipient of the first locally manufactured desktop was Infosys Technologies, one of Dell’s largest customers in India.
Over the next five years, $30-million will be invested in Dell’s Sriperumbudur facility, which has a single assembly line and a capacity to roll out four lakh units per annum in a single shift basis.
This while, Dell can operate up to three shifts, and has enough land at its disposal for the setting up of additional lines for rolling out 2.5-million units per annum.
Addressing a press conference, Mr. Rajan Anandan, Vice President and GM, Dell India said: “We have commenced production today at this facility, which happens to be the third in entire Asia-Pacific region and Japan. The Sriperumbudur facility is also our third plant to go on stream this year, with two others in Brazil and Poland. This facility is very strategic for our operations in India and it will help in reducing the lead time for delivery by 40% – 50%. It will also help in reducing costs and we will pass on the benefits to the customers, as there will be meaningful reduction in prices.”
Of the first Made in India desktop, it was handed over to Deepak Sinha, Vice President - CCD and RN Koushik, AVP - CCD, Infosys, in the presence of Dell’s Kip Thompson, Vice President - worldwide facilities and KY Yong, GM - Manufacturing Operations.
“We have put up the facility in just a short eight months and it is great day for manufacturing and technology in India,” said Mr Thompson, who was earlier instrumental in launching Dell products in the country. According to Yong, the new facility with a built up area of 1.1-lakh sq. ft., has also been allocated 50-acres with plenty of space to set up additional assembly lines, including the 100-acres allocated for suppliers.
Further, he went on to say: “When we started operations at Penang in Malaysia and Xiamen in China in 1995 and 1998 respectively, the facilities were of the same size as in Chennai. However, they have since expanded to very large capacities and we expect the same to happen here too.” With an overall market share of 6% share in India, Dell’s share from among large corporates is a steady 30%. As well, it has also begun to gain entry in to the banking and financial services segment.
While, China attracted many overseas IT hardware manufacturers into setting up manufacturing facilities there, slowly it is dawning on them that while Chinese products may be cheap, they can also be tacky. Consequently, India’s high quality performance in the software sector has ensured, it is now being viewed as a place where quality IT hardware can be manufactured.
While, an appreciating rupee is bringing its own woes to India’s outsourcing industry, however, any losses will, no doubt be off-set as varied industries are off-shored to India. From writing code to manufacturing computers, India continues to impress with its varied skills and talents!
