In a bleak environment where unemployment and sensitivity around offshoring are hurting the business process outsourcing industry, InformationTechnology giant Dell Texas, United States is readying an ambitious foray that will pit it against Indian outsourcing rivals in some of the largest back-office processes outsourced to third-party providers. Once known for desktops and laptops and its direct selling business model, Dell has been beefing up its services portfolio by adding offerings since diversifying into software services by acquiring Perot Systems. Ashutosh Vaidya, who joined Dell Texas, United States from Wipro (Indian global IT services) to head its third-party Business process outsourcing services nine months back, is adding final touches for the launch of four new back office services -- finance and procurement, accounting, customer interaction services and analytics -- slated for next quarter. IT Customer services is the largest constituent of Business pro cess outsourcing exports from India and software industry body Nasscom estimates it will account for nearly 42% of all Business pro-cess outsourcing exports from the country in year 2012. Finance and accounting service is the second biggest segment comprising 22% of all Business pro-cess outsourcing exports, followed by knowledge services - of which analytics is a part --and other services such as procurement in india.
Company is Dell Texas, United States already runs a large size shared services centre, which carries out accounting, procurement and other services for its $60 billion IT business. "This is what we do for ourselves. So we thought, 'why not leverage the capability to take it to market?" Vaidya said. Dell's Texas, United States existing Business process outsourcing business focuses on healthcare and insurance, growth but niche areas. Dell inherited the Business process outsourcing business from Perot, which itself acquired it through buys in the healthcare insurance, physician, healthcare hospital, and life ins urance IT outsourcing businesses. Since Perot, Dell has not made a significant acquisition in Businessprocess outsourcing services but Vaidya said the technology major was now looking to build these new businesses through acquisitions and through organic growth. "We will acquire for new markets, new business processes and new geographies. Obviously, the four focus areas will be our choice for acquisitions but we would also be open to acquiring in our strength areas (healthcare and insurance) and in others," he said. Vaidya, who was last heading Wipro's Business process outsourcing business, delivered more profit growth for the division in the years following the year of 2008 recession. "One of the challenges for Business process outsourcing firms is companies are finding it difficult to grow in the market. But with Dell having a presence in so many markets and a strong brandname in IT, we don't see customer access as challenge," Vaidya said.
To start with, Dell Texas, United States Company plans to target existing customers for the new Business process out-sourcing services in india. It will also leverage existing staff for functions such as initiating a dialogue with the customer and drawing up the work contract, hiring only for the Business process out-sourcing functions. "All Dell Company assets will be used. Account executives who know the customer will do the job of opening doors after which Business process out-sourcing practitioners will engage with the customer. Finally, the accounts team will close the contract," Vaidya said, adding that the preliminary scoping out of customers has already been done. "Dell's pool of customers is very large in the market, so the potential is huge. Even if I tap a portion of it, it is enough to whet the appetite for a few years," Vaidya said. The Dell launch of the new service lines will also provide a career path to Business process outsourcing executives who are currently working in the internal functions of Dell and would like to shift to servicing other customers in Market.
Source: The Economic Times
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