Computer maker Dell Inc indicated on Friday that it was back-pedalling its ambitious hiring plans for India, turning non-committal on meeting headcount numbers it had envisaged two years ago.
Company chairman Michael Dell had said in 2006 that the company will double its headcount from the then figure of 10,000 by 2009. Earlier this year, Dell India had an employee base of 13,000 people. With 70 per cent of the aimed addition still not done, Dell is apparently having second thoughts.
Dell has not only been targeting India as a key market for computers, but also uses Indian towns as bases for its global service operations in technical support and back-office processes.
“The world has changed quite a bit (since that announcement) – we will have to see how it goes and decide on resources. In the long term, it will grow but about resources for the next year, it will depend on how the world economy grows,” Steve Felice, President, Dell Asia-Pacific and Japan, told Hindustan Times.
A reduced spending in the consumer market and a lower IT spending by corporates has impacted Dell’s business, whose fortunes are tied to that of the global economy hit by recession in many places and slowdowns elsewhere.
Dell’s revenue in the third quarter fell to $15.2 billion from $15.6 billion the year-ago quarter while net profit fell to $727 million from $766 million over the same period.
Analysts expect the PC industry growth to dip over upcoming quarters. Advisory firm Gartner has lowered its growth forecast for the fourth quarter to 14.9 per cent from previous estimates of 24.4 per cent.