Len­ovo ends post-sales agree­ment with IBM


Len­ovo In­dia has dis­con­tin­ued a five-year-old agree­ment with IBM for post-sales ser­vice and sup­port for its range of desk­tops and note­books. The Chi­nese PC maker will now man­age on its own the ser­vice part­ner net­work.

Sudipto Ghosh, Ex­ec­u­tive Di­rec­tor, Ser­vices, Len­ovo In­dia, ex­plained the rea­sons. “Fol­low­ing our ac­qui­si­tion of IBM’s PC busi­ness, in In­dia we had signed an agree­ment whereby IBM would mange our post-sales ser­vice. We de­cided to dis­con­tinue the con­tract this year since we need to cover a larger ter­ri­tory and in­crease the scale of op­er­a­tions. Also, the cost of ser­vice de­liv­ery through an out­sourced re­la­tion­ship proved to be ex­pen­sive es­pe­cially in the cur­rent mar­ket sce­nario. In ad­di­tion, our en­try in the smart­phone mar­ket de­manded that we set up our own sep­a­rate sup­port in­fra­struc­ture.”

Len­ovo for­mally ended the IBM re­la­tion­ship at the end of Oc­to­ber 2013. “We started cre­at­ing our own ser­vice plat­form and in­fra­struc­ture six months back, and yet in this short time we have man­aged to put a very strong in­fra­struc­ture in place us­ing our global pro­cesses and best prac­tices,” said Ghosh.

Len­ovo now has a sep­a­rate ser­vice part­ner net­work for the con­sumer and SMB (CSMB), and the en­ter­prise seg­ments. It has signed on 37 na­tional and re­gional ASPs with a cov­er­age of more than 700 towns and 28,700 pin codes for both seg­ments.

“Of the 37, five na­tional ASPs have been ap­pointed for the CSMB seg­ment while 32 ASPs will cater to en­ter­prise cus­tomers. Separately, for our smart­phone busi­ness, we have cre­ated an ASP net­work of 160 part­ners cov­er­ing 150 cities with

“We want to in­crease the scale of op­er­a­tions. Also, the cost of ser­vice de­liv­ery through an out­sourced re­la­tion­ship was ex­pen­sive” SUDIPTO GHOSH Ex­ec­u­tive Di­rec­tor, Ser­vices Len­ovo In­dia

a plan to scale it upto 600 ASPs cov­er­ing more than 1,000 cities and towns by the end of 2014,” in­formed Ghosh.

Len­ovo has set up three toll-free num­bers for dif­fer­ent prod­uct cat­e­gories—Think, Idea and Len­ovo smart­phones. Said Ghosh, “Hav­ing our own ser­vice in­fra­struc­ture is help­ing us to re­spond faster to cus­tomer needs. We are al­ready see­ing an en­hance­ment in cus­tomer ex­pe­ri­ence, and the cost of our post-sales op­er­a­tions is com­ing down con­sid­er­ably.”

Ghosh ex­pressed con­fi­dence that Len­ovo will now be able to im­prove the re­spon­sive­ness and turn-around of the post­sales ser­vices of­fered. “To­day we pro­vide on­site war­ranty on all our PC prod­ucts for both CSMB and en­ter­prise cus­tomers. We are con­fi­dent of im­prov­ing the turn­around of these ser­vices.”

With the ser­vice in­fra­struc­ture in place Len­ovo is now plan­ning to in­tro­duce sev­eral new ser­vices for its en­ter­prise cus­tomers. “We have started of­fer­ing sev­eral value-added ser­vices such as mi­gra­tion ser­vices, tech re­fresh, as­set life­cy­cle man­age­ment and other ad­vanced ser­vices which were ear­lier pro­vided by IBM,” said Ghosh.

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