Offshore model works fine when the volumes are lower

Ever since Lexmark adopted the offshore model in India, they claim to have
made significant gains. Lexmark has made a strategic decision to move out of the
low-end printing segment knowing fully well that more than 75-80 percent of
business in India comes from this space.

KP Ranjan Country Manager-India Lexmark International

Why has Lexmark decided to work on an offshore business mode in India?

Lexmark is present in 150 countries across the globe. It has a strong
presence in the printing space. The printer division of IBM spun off in 1991 to
become a separate entity called Lexmark. In smaller markets, Lexmark is
operating on offshore model. Lexmark went offshore in India in 2007. The whole
strategy was to compete strongly in the market. However, with significant gains
in the last two years, Lexmark is building up the onshore capabilities.

What initiatives have you taken to streamline your sales and distribution
model?

Lexmark has been continuously improving its product portfolio every quarter.
In May 2009, we launched more than 67 products creating huge excitement in the
customers and the IT community. On the distribution front, we have appointed CMS
Info Systems as our new national sales and service partner. With a strong team
of more than 12,000 plus employees we expect this relation will be a win-win for
both parties. The SMB segment will be driven by the Lexmark Value Print (LVP)
Partner program.

How are you ensuring that you stay ahead of your competitors?

Lexmark has the maximum number of award winning products in the market
today. Our managed print services division is creating great value for
customers. We work with our customer in reducing paper. In the entire lifecycle
of a typical multifunctional device it is the paper which accounts for more than
79 percent of the carbon footprint. It is imperative that printer companies

take steps to reduce paper. We are giving huge benefits to customer in reducing
their cost by more than 30 percent.

Will you be looking at appointing more national distributors?

Cyberstar is our distributor in the low-end, SMB segment. Lexmark has followed a
worldwide strategy to move out of the low-end printing segment. This is
necessary as the low-end boxes are very uneconomical on running cost and are
also far removed from our green-initiative program. This is a big strategic
shift knowing very well India has more than 75-80 percent business in the
non-network and non-duplex printing space.

RUTH SAMSON

ruths@cybermedia.co.in