The Indian economy has enjoyed tremendous growth in the last two decades due to the strong domestic economy, robust foreign investment and liberalization policies. These factors have not only contributed to India’s economic growth but also to its technological advancements. As a consequence, Indian business is seeing a significant increase in the scope of outsourcing services and products. While earlier outsourcing was primarily related to software and IT-related sectors, now almost all sectors of the Indian economy are witnessing a notable rise in this business practice.
The basic reason behind this growth in the outsourcing services sector is the rising number of multinational companies, which outsource their production and marketing activities to third world countries like India. Many large and mid-sized Indian companies have found that their overhead expenses and margins reduce significantly, if not significantly, when they outsource their respective functions. In fact, most of them are quite impressed with the services and product offered by offshore vendors and believe that such deals can greatly contribute to their overall success. Further, outsourcing helps these companies cut on their import duties as well.
On the other hand, the Indian market has also witnessed a marked rise in the outsourcing services sector. The primary reason behind this is the rising demand for outsourcing-related products in the domestic market. With millions of people employed in the manufacturing and allied sectors across the country, there is a huge requirement for durable and cost-effective products in the market. These products include machinery and industrial equipment, chemicals, textile fibers, automobiles, petroleum products, and a lot more. Needless to say, such products do not come cheap. So, an efficient India manufacturing house can help their overseas clients cut down on their import costs by outsourcing their respective production processes and products to India.
But, what does it take to set up an India manufacturing company? First, you need to identify a niche. Then, decide on the kind of products that you want to produce. You can either outsource services or products. Some even opt to form a joint venture with other companies from your country of origin. If you are looking to outsource services, then you can contact a number of third-party India service providers operating in the outsourcing market.
After identifying your needs, you now need to make a business plan. A business plan should address the needs and wants of your clients, financial position, and the nature of your business. It will also serve as a guideline when hiring the right manpower, as well as setting up the appropriate infrastructure. Moreover, it will help you to know the costs involved in the entire operation.
The next step involves selecting the outsourcing services. Research extensively to know about the service providers in India offering different kinds of services. Make sure you choose those that offer services that your target market needs. For instance, if your target clients are small-scale entrepreneurs, you may focus on BPO (Business Process Outsourcing) services, while if your clients are large corporations, you may consider CPO (Cost Per Action) services.
It is also important that you establish good relations with the outsourcing service provider. You will do well to develop an excellent relationship with them. This will help both sides to benefit from their collaboration. Remember, the service provider will be able to provide quality services at a lower cost, as compared to the manufacturer. As for your clients, they will also get to enjoy more time to concentrate on their core businesses.
In India, there are lots of outsourcing service providers to choose from. This makes it hard for you to decide, which among them should you partner with. However, you must know your core priorities and know what benefits each partner can provide to you. Once you have zeroed in on a few manufacturing companies, you may want to compare their services. Look for price, reputation, experience, and delivery time before making a decision.