Huawei Accepts 3Com’s Offer

Huawei has accepted a bid offer from 3Com to purchase Huawei’s entire stake in their joint venture Huawei-3Com (H3C).

Of the transaction, Guo Ping, senior vice president, Huawei Technologies, said: “The divestment will further enable Huawei to focus its efforts on its core business, strengthen our leadership position in the ALL IP-based FMC (Fixed and Mobile Convergence) solutions market, and create long-term value and potential growth for our clients. Over the past three years, 3Com and Huawei have contributed a great deal to the development of H3C. H3C has become one of the leading global suppliers of IP networking products and solutions and we wish them every success in the future.”

Dell to Establish Unit in India

Dell will locate the company’s first manufacturing facility in India in Tamil Nadu, following completion of a memorandum of understanding between Dell and state officials.

In the presence of Tamil Nadu Chief Minister K.M. Karunanidhi and Federal Minister for Communications and Information Technology Dayanidhi Maran, the agreement was signed by Shaktikanta Das, industry secretary on behalf of the government of Tamil Nadu. Rajan Anandan, vice president of India sales, signed the MOU on behalf of the Indian subsidiary of Dell.

The project follows Dell’s disclosure earlier this year that it would establish a dedicated manufacturing operation in India, where the company is achieving strong customer acceptance and demand in a strategically important market. In its most recent operating quarter, Dell shipments in India increased 82 percent while revenue grew 63 percent. The company gained two points of market share in the period, to more than seven percent, and ranks No. 4 in the country.

Dell expects to begin India manufacturing in the first half of 2007. That will initially focus on production of desktop computers, which make up about 70 percent of Dell’s current business in India. The new facility and related operations will be located in a 50-acre land area in Sriperumbudur High-Tech Park, outside of Chennai.

DOZ Wins Approval of Top Analyst

FAO Research (www.faoresearch.com) has completed a five-month, comprehensive, independent analysis of The Dubai Outsource Zone (DOZ) and concluded that Dubai is an “extremely attractive operational alternative” for companies seeking a new offshore outsourcing destination. DOZ (www.dubaioutsourcezone.com) is one of several initiatives of the Dubai government to foster technology and knowledge-industry growth.

Dubai’s location near both Europe and Asia is a major selling point. DOZ offers financial incentives, government assistance, infrastructure and employee benefits seen nowhere else in the world, such as 100 percent exemption from all taxes, a reliable telecommunications and technology system, a one-stop-shop of support services and a pool of qualified workers from around the world.

FAO Research’s report, “Outsourcing In an Arab Nation? Dubai as the Hidden Jewel for Finance and Accounting Outsourcing, Shared Services and Captive Centers,” suggests that Dubai’s progressive government leadership, robust technology infrastructure, relative social progressiveness, financial incentives and friendly support services make it a “hidden jewel” for outsourcing providers and companies looking to set up effective offshore operations as part of their globalization strategy.

Content Missing From Banking Websites

Banks are fumbling the opportunity to cement their relationships with customers by emphasizing sales over service on their home pages, according to a recent industry study by Vox, Inc. The analysis showed that only 20 percent of the real estate on bank home pages was devoted to customer services and features, such as account access, tutorials and search. Sales-related topics like sales and service offerings chewed up an average of 45 percent of the home page.

The customer-experience study by Vox, Inc. reviewed 17 bank websites, including the Top 10 US banks by asset level. By analyzing the standards, functionality and overall usability of the home pages, the study highlighted the disconnect in the customer experience between bank priorities and customer needs.

“Customer experience and engagement is critical to ensuring strong, long-term customer relationships. Online banking is one of the most effective offerings for cementing customer loyalty. It’s surprising how many of the major banks don’t emphasize their tutorials for online banking and online bill payment,” said Luis Serpa, Mind Model Lead Analyst.

Usability findings from Vox’s Banking Mind Model Study identified several key issues, including:

• Search and Help: Most bank sites examined do not offer effective search results, and have insufficient or poorly located tutorials or other advanced help features.

• Common Task Access: Online bill payment and ATM/branch locator access is generally poor due to the number of clicks or steps required.

• Navigation: Large banks in particular need to do a better job of developing strong site navigation. As diverse financial product and service offerings increase, excellent navigation becomes essential for a positive customer experience.

• Screen Display: Banks are not capitalizing on valuable screen real estate by continuing to design exclusively for the almost-obsolete 800x600 resolution.

To read more real customer experiences, log on to www.customerexperienceblog.com.