Business model for the future goes one step further

World-leading PC manufacturer Dell and the grand old man of IT, IBM, have signed a $6bn deal for support services. This follows on an even larger deal - $16bn - struck earlier in the year for the supply of components.

Dell has built its business on a 'slim' model. The company has always concentrated its own skills on manufacturing and distribution. Sales functions were initially handled over the telephone and are now moving increasingly to the internet. Unlike most of its competitors, it has never built its own service division, preferring to buy in the necessary support.

In this latest agreement, IBM service resources will be rolled out for Dell, at first in the US and then globally.

Dell expects this to result in higher quality services for its customers and in more rapid response times. It will also enable the company to continue focusing on what it does best - building and selling PCs.

Elliott Chase