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
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