Rush of companies to invest in Asian Nations

In this article we start with Dell’s approach of establishing themselves in Asia as a major business enterprise.

Dell Inc expects shipments of personal computers, notebooks and servers in Asia excluding China, Japan and South Korea to grow almost 20% in 2007.

Dell’s president for Asia Pacific South, did not give a figure for the 2006 shipments for the same market but said shipments for the whole of Asia, including China, Japan and South Korea, reached 3.5 million units per quarter last year.

Dell, which was recently displaced by Hewlett Packard Co as the world’s largest PC maker plans to change the way it sells its products to help boost sales in the region.

Dell is the No 2 maker of PCs with 15% of the global market, compared with HP’s 19%, according to the most recent figures by technology research firms Gartner and IDC.

Dell has long relied on a direct-to-consumer business model in which buyers place orders online or by telephone, was exploring opportunities to sell its products to consumers through retailers and distributors in the region.

The company started selling a few systems at Wal-Mart Stores in US very recently.

Dell has realized lately that the direct model should not just be a religion. Because some consumers especially in Asia want to go to a store to touch, see, feel, compare the PC and some are not used to going on the web, or on the phone, to order.

The company still viewed the direct sales model as effective. Since its founding in the 1980s, Dell has relied on selling PCs and other products directly to consumers and business customers over the phone and Net. It viewed direct sales as an important cost advantage over competitors who sold computers through retailers.

The strategy worked, helping Dell become the world’s leading PC maker. But last year, the Round Rock, Texas-based Company lost its lead to a revitalized Hewlett-Packard Co, which now sells systems online, by phone and in stores.
In Asia the expansion of Dell’s distribution network would take place in near future may take different forms and not necessarily copy the Wal-Mart model.

US co Synopsys plans to invest $50 m in India :

US-BASED Synopsys Inc, a $1.1-billion semiconductor design software firm, plans to invest $50 million (Rs 200 crore) in its India operations. The proposed investment will be used to expand R&D facilities in Bangalore and Hyderabad over the next three years. The expansion exercise will also translate in an incremental growth in technical manpower in the country. Incidentally, Synopsys has already invested $100-million in its India operations since it floated a wholly-owned subsidiary in 1995.

The Indian operation has emerged as a key contributor to Synopsys’ global research, accounting for nearly 20% in terms of delivery. The year-on-year investment in India has been growing by 20%, especially in the R&D and field applications space.

Synopsys has identified its Indian R&D as centre of excellence in verification and IP technology for electronic design automation (EDA) tools and methodologies. The company’s recent acquisition of ArchPro Design Automation Inc will further bolster its Indian research process in low-power verification technology.

By way of this acquisition, Synopsys has added 30 technical professionals from ArchPro’s Indian outfit and are integrating ArchPro’s facility with their Bangalore operation. Synopsys will also expand its India headcount from present 600-odd to 750 people.

While Synopsys’ entry into India was through the setting up of an offshore development centre, it now intends to increase its Indian clientele. The company is building a sales force which will service clients like Wipro and the Tatas.

India is also turning out to be a big talent ground for Synopsys’ global operations. About 25% of their global headcount is from India. They are also expanding their India university partnership program in tier II and III institutions to train engineering students for VLSI and EDA.