Dell likely to send more work to Asia

Since the beginning of the slowdown, IT firms have been maintaining that India will benefit if firms try to cut costs. Now, there is evidence that it actually may be happening.

In a conference call, Dell’s Asia-Pacific and Japan head Steve Felice said there is an opportunity to shift more work to Asia and Dell will do it. In its third-quarter results announced, the US-based PC manufacturer’s tight rein on costs helped it post better earnings despite a sales slump.

Dell has invested heavily in its India and China factories. From Bangalore, it has built systems management capability and software for enterprise activity. While in China, it does design work and R&D. In addition, in Malaysia’s Cyberjaya, it does software development. “Our intention is to grow these,” said Felice. Elsewhere, Dell has announced job cuts.

“We don’t just service Asia out of these locations. They have worked well globally to the extent that there are opportunities to shift more work to Asia arise, we will do it... We are happy with the performance of these facilities to serve global needs and will continue to invest them depending on market conditions,” Felice said.

However, he said the growth in Asia was not necessarily linked to the cost-cutting in the US and was in response to the growth in other parts of the world.

Felice said there was decline in overall IT spending in Asia-Pacific and Japan. Dell had weathered it and grown. Terming India’s growth as outstanding, he said the country had witnessed 77% growth in unit terms and 48% growth in revenues for Dell in the third quarter.

For China, growth was up 44% in unit terms and 18% in revenue terms. “We are extremely committed to India,” he added. The surge in growth has primarily come from consumers and the small.

Source: Times News Network

Is Wipro facing impact of global woes?

Wipro in India sees the impact of the financial crisis in the form of lower demand output.

This is the view of Wipro CFO Suresh Senapaty during a television interview at the Reuters India Investment summit in Bangalore.

To check out the video interview...click on the video below:
http://in.reuters.com/news/video?videoId=94456&videoChannel=104

Grim economic situation, says Hu Jintao

Chinese President Hu Jintao has warned the outlook for the world economy was not looking good, but that continued strong growth in China could help serve as a global buffer.

"The situation is very grim," Hu told world business leaders gathered in the Peruvian capital ahead of an Asia-Pacific economic summit.

"The sound and steady growth of the (Asia-Pacific) economy is threatened by the grim world economic situation."

Hu stressed that China's main contribution to world efforts to address the global financial crisis was to maintain steady economic growth at home.

"The steady and relatively fast economic development in China is in itself a major contribution to upholding international financial stability and promoting world economic development," he said.

China's growth, which soared by more than 11 per cent last year, slowed to 9.0 per cent in the third quarter this year, dragged down by economic slowdowns in key export markets such as the United States, Europe and Japan.

China has put together a four trillion yuan (586 billion dollar) stimulus package to shore up the economy, which for years had shown no signs of letting up as the country turned into the world's manufacturing hub.

China has repeatedly said it must focus resources on maintaining domestic growth amid rising expectations overseas that its 1.9 trillion dollars in foreign exchange reserves could be put to use fighting the world financial
woes.

However, Hu vowed China would step up its activity on the international financial scene. China "will play a more active role in international economic cooperation," he said, without offering details.

Source; Agencies