June 24, 2008
Manufacturing Downturn Fuels Growth in Offshore Outsourcing
The manufacturing sector is struggling with a slowdown in global spending as well as rocketing fuel and food prices yet offshore outsourcing is alleviating some of the industry’s woes.
With spending slowing dramatically, companies are bracing for tough economic times and the manufacturing industry looks set to be hit hard. However, amidst the gloom of the global economy, offshore outsourcing is helping manufacturers and retailers to remain competitive.
Hardeep Garewal, President of Strategic Accounts at UK-based Indian outsourcing company ITC Infotech, believes that outsourcing’s biggest growth is yet to come because of the decrease in global spending.
“Offshore outsourcing was once seen as a way to simply manage projects- now it’s becoming the norm and not the exception to reduce costs and boost the bottom line. And even though many companies are experiencing hard times, we are predicting growth in the next 18 months,” he said.
This defiant trend is largely due to many western manufacturers facing increasing pressure from stakeholders to offshore their business in order to cut costs and remain profitable. Yet, many services which aren’t being outsourced to India are still occurring internationally and business process outsourcing in this sector is latent, particularly in product development work.
The change in how manufacturers are doing business in Europe is having a profound effect on outsourcing, however ITC Infotech is still investing and growing in key sectors despite current market conditions.
ITC Infotech is part of the $18 billion ITC Group, India’s third biggest company listed on the SENSEX. ITC is one of just a handful of companies in the world that are carbon positive, which it has achieved through large-scale tree plantations. It is also water positive by increasing water conservation and rainwater harvesting efforts so it produces more water than it consumes. ITC says it is also making strides toward its goal of producing net zero solid waste.
Source: onrec.com news