Out-Sourcing in Manufacturing Sector: A Global Trend

Abstract

Manufacturing sector is developing fast in compare to other sectors. It requires different inputs to transform the inputs into output at minimum cost with high quality products and higher speed of production. After globalization and liberalization of mostly economies, it has been observed that the key to success depends on cost, quality and speed. It is observed that india is a favourable destination for manufacturing products. The global contract manufacturing business is estimated to be close to $ 150 billion and is expected to grow to more than $ 500 billion by the end of the decade. It is indeed a huge market for indian players to address. Currently, the top five companies in the global contract manufacturing market”slattern, flextronics, sci, celestite and jabil account for more than a third of the global market. Other players also try to increase their market share with adopting the new technology and outsourcing different inputs. There is very tough competition to capture the global market. This case study tries to study the global trend of outsourcing to make manufacturing feasible.