Dell interested in Indian-model IT firms

Dell, the world’s second-biggest maker of personal computers after Hewlett-Packard, wants to buy lean IT companies of the Indian school of outsourcing to improve its scale and credibility in services.

Dell makes almost 60% of its revenues from selling personal computers and has established a support business for corporate PC users. It now wants to expand its services business further into managing companies’ computer networks.

Steve Schuckenbrock, president of Dell’s large enterprise operations, said it was taking a different route from rivals HP and IBM by helping firms strip out costs, rather than selling them long consultancy and software contracts.

The company, which has $10 billion in cash and short-term investments, has said it wants to grow through acquisitions as well as organically, and Schuckenbrock said Dell could use some help in establishing a reputation for services.