As Dunnam (2002) states, since the late of last century, Dell has had to face the fierce competition from the other powerful competitor such as IBM and HP. There is a need to significantly reduce both service and sales costs obviously. Therefore Dell began to change business strategies in order to enlarge operation through the globe. Seeking for the best strategy, Dell set up a call center in India instead of the former American centralized concept, which would offer the efficiency and low cost retails and customer services. Within three month, approximate one third of labor cost decreased. After a few years, Dell has cut a large number of services provided in-house and developed business by constructing new globalized branches such as China, India, Brazil and Europe for outsourcing. Dell’s vice president Dunnam (2002), cited in Gareiss (2002) analyzes that outsourcing is one of Dell’s fastest developing business, making over four billion dollars income per year and increasing at 30% a year.
In fact, the globalization strategy like Dell’s does not only have a lot of benefit on the company, but also a win-win. To local state, these foreign direct investments will enlarge the in-house income and reduce unemployment. According to Finger and Schuler’s (2004) Research, the export of India’s hand made crafts has rushed in 1990s, rising five percent during the last decade.