It's restructuring times at Intel!

NEW DELHI

NOVEMBER 3, 2006

In its bid to keep up with the changing business
dynamics, Intel India has engaged itself into a big restructuring exercise. As
part of this initiative, the company is in the process of dividing India into
three geographies, which would be headed by three different business head for
smooth running the company's operations in the Indian region.

As per the company's plans India would now be
divided into three geographies of South (including Sri Lanka), West and North
(including East and Bangladesh). According to sources close to the company,
Joydeep Bose, Rajesh Gupta and Sandeep Aurora will now head these regions
respectively. 

While official sources at Intel have neither confirmed nor denied this
development, experts in the channel community are feeling that all these moves
are being directed to have better business results from this region.

“If we closely look at each of these positions,
certainly there is a different set of responsibility and role that is being
assigned to these people now. This would certainly help the company in terms of
better managing the overall business. This would also mean that decision-making
will become local and a bit focused towards each of these regions. This is
really good for cultivating better results,” informed a New Delhi Based
industry source close to the company's operations on conditions of anonymity. 

GB Kumar to join Cisco


In another big development within the company, GB Kumar, who was Intel's
Director (Sales), South Asia has decided to move out of the company. According
to key sources, Kumar has already put in his papers and is likely to join Cisco
for its 'Customer Advocacy Services division' and would be based in
Bangalore. He is likely to join from 1st of December 2006.

When contacted Kumar declined to comment on this
issue. “I cannot comment on this at present. All I can say is that at present
I am very much with Intel,” he added. An old timer with Intel, GB Kumar had
joined the company way back in August, 1996 and has also worked with Oracle and
IBM.

On the other hand, sources close to Cisco have
confirmed on conditions of anonymity that Kumar is moving to the company's
fold very soon. “He is going to join for the customer advocacy services
division,” the source added. 

Sub distribution model stopped?

After having started the 'channel-friendly' sub
distribution model to push its sales for India, there is confusion all around
when it comes to the current status of this model within the Indian region.

It may be recalled that as part of this program, Intel
had identified 12 key 'distribution associates' in the month of July 2006.
While, some of these sub-distributors are saying that there is no 'official
communication' from Intel to close this model, certain sub-distributors have
confirmed about this model being stopped by the company.

Even as the company's official spokesperson has come
forward to confirm that the program still exists, people from the distribution
and the channel community are saying that Intel is not moving ahead with this
sub-distribution model in India.

“I know for sure that Intel is not billing the
channel community as per this sub distribution model now. So it means that we
are back to the days when we did not have this sub-distribution model in
place,” asserts a channel player from Chennai on conditions of anonymity.

While all these developments seem to be different to
an outsider, there is a common thread of fighting with the competition, which is
weaving these developments together. “A very big industrialist once said that
a company needs to reshuffle its cards every now and then in order to put a
brave face in front of its competition. Intel is facing a lot of competition
today and the company is doing just that. All these developments are a part of
the company's efforts to streamline its people and business activities,”
adds an industry expert on conditions of anonymity.