Wednesday, December 12, 2012

Dell looks to tap opportunities in healthcare business

Multinational IT firm Dell, which recently roped in Indian IT veteran Suresh Vaswani to head its services business, is preparing to tap opportunities in the healthcare sector in the country even as Indian IT service providers are on the lookout for opportunities from healthcare reforms in the US.

Dell, which gets most of its services revenue from the healthcare industry, wants to open its innings in India by going after the mid-market segment, which consists of firms employing up to 5,000 people, said Sid Nair, global head, healthcare and life sciences , Dell Services.
"India and China have the biggest population but the lowest healthcare penetration ," said Nair, explaining why Dell has chosen healthcare as a focus area. In the Asia-Pacific region, India is the largest market for Dell after China.

"We are not going to China first because of the language barrier. Plus, India has software talent." On the flip side, of the total $10 billion that Gartner estimates India spends on IT services, the healthcare industry has one of the lowest spends.

"There are no large systems integration deals in healthcare in India," admits Nair, which is why he says Dell plans to use a cloud-based model to tap the healthcare segment in India. Under the cloud-based model, Dell will offer a prepackaged stack of solutions on the cloud, which hospitals and healthcare providers can tap into.

For financial services and retail and manufacturing industry verticals, Dell is offering a similar stack of applications on the cloud. It has, for instance, tied up with Ramco Systems, for offering enterprise software on the cloud.

What this means is that instead of buying the hardware and software licences, companies can opt for a prepackaged stack of applications on a pay-as-you-use model. "In healthcare, this is a delivery model we only want to take to India and China because in markets like US, there is already an existing installed base and large systems integration deals," he adds.

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