Dell-Perot deal: What it means for India

Hardware business seems to be increasingly going out of favour. First, IBM moved out of it in 2004; the year 2008 saw HP buy service provider EDS to further galvanise its position as a solutions provider and weaken its dependence on the hardware business, and now comes Dell Inc’s proposed $3.9 billion buyout of Perot Systems Corp. The deal reflects largest personal-computer maker's ambitions in the computer services market.

The deal comes as large technology companies expand into higher margin IT services to secure stable and recurring revenue as computer hardware becomes cheaper. Dell on its part has been trying to diversify its range of offerings, and services currently make up only around one-tenth of sales.

Though most analysts believe that the deal is likely to have little immediate impact on the two companies India operations. However, in the long-term India is sure to play a critical role, as it being an important part of the both Dell and Perot’s global strategy. The duo also have considerable presence in the country. Here’s looking into what the Dell, Perot marriage may mean for India.