Outsourcing to India -- Federal Mogul spins plans to outsource auto ancillaries from India

Michigan-based auto parts maker Federal Mogul is all set to make a roaring entry into the Indian automobile Industry, with its plans to outsource auto ancillaries from India through the existing joint venture business with Goetze India.

“Discussions have reached fairly advanced stages for an outsource agreement with Federal Mogul where we would supply auto products to their global clients taking advantage of the cost factor.
In fact, we may even set up a new plant once the demand picks after the deal and even expand the product range to include bearings and auto parts adhering to latest eco-friendly norms,” said Anil Nanda, chairman and managing director, Goetze India.

Federal Mogul, which supplies ancillaries to auto majors like GM and Daimler Chrysler, holds 30% stake each in Goetze India along with Anil Nanda while public and institutional investors hold another 30%.
“With the new emission norms, several unorganized players in the auto ancillary segment will have to wind up which throws up more opportunities for us. Moreover, export markets have started looking up which offers better margins,” said Mr. Nanda.
This automobile company has started upgrading its manufacturing plants to introduce piston and piston rings that meet Euro III and Euro IV norms.

Last year, the Rs. 500 crore Goetze India had signed a technology agreement with Federal Mogul to use specific proprietary technology of the latter for manufacturing contemporary pistons. Analysts said that Goetze India is also working towards realigning the debt-equity structure where several options are being pursued to reduce the debt component including liquidating its Rs 11 crore investments in Escorts. Within the OEM segment, its revenues are spread across all auto players including Tata Motors, M&M, Bajaj Auto and TVS.


Priyanka. S

Outsourcing to India –Indian Animation Industry steps in

In the face of stiff competition from more established animation firms in the Philippines, South Korea, China and Taiwan, the Indian animation industry is on a roll with its growing market share.

Hollywood companies are increasingly Outsourcing cartoon characters and special effects to India because of lower costs and an English-speaking workforce that understands Western humor. Other animation companies are Outsourcing animation works to India that include -- animation for commercials and computer games

Indian Animation companies are working on animated films based on characters in Indian folklore and mythology, but designed to have universal appeal. These two streams are coming together. India's emergence as a hub for Outsourcing of animation work should not really come as a surprise. It has one of the biggest film industries in the world as well as a large supply of low-cost high-quality software engineers.

Toonz Animation, a leading company in Kerala, is one such animation company that, offers Outsourcing of animation work at rates 25 per cent to 40 per cent lower than other Asian studios and much lower than those of American studios.
Its most recent assignment was producing a ‘Christmas Day Special’ for children that would be broadcasted by BBC and to be shown in UK.

Other International animation films that are toying with the idea of Outsourcing animation work to India include, The Walt Disney Company, which is exploring India as a production base for its animation and feature films.

MTV is considering adding India to South Korea and the Philippines as Outsourcing destinations and the popular Cartoon Network is buying programmes made in India.

Priyanka.S

Outsourcing to India – Goa organizes two-day Outsourcing Convention

A two-day convention based on the theme "Outsourcing: Challenges Ahead" was recently organized by Goa Chamber of Commerce and Industry.
The third IT convention, in the series under the banner of Goa Agenda, was addressed by number of nationally acclaimed IT leaders and attended by distinguished crowds drawn from industry, academics and administration.

In his welcome address, president of Goa Chamber of Commerce and Industry Nitin Kunkolienkar said that though Goa ranks high on most of the parameters required for the BPO sector, nothing much is being done to capitalize on Goa's advantages.
He also expressed a need for ascertaining the reasons for Goa's backwardness in the IT sector and expressed confidence that Goa will get its due in the BPO sector soon. The chief guest of the inaugural function, D-Link (India) MD, KR Naik termed Goa as an ideal destination for BPO due to its large English speaking population and unique culture.

Besides, the Interesting convention on business process outsourcing (BPO) and Outsourcing - The two-day symposium also, saw technical sessions devoted to software development, R & D and social/political opportunities and concerns.

Priyanka.S

Outsourcing to India -- Tricom to set up Outsourcing firm in Pune & Mumbai

Cashing in on the booming Outsourcing Industry, Non-voice business process outsourcing company Tricom India Ltd has decided to invest Rs. 20 crore (Rs 200 million) expansion programme, which includes a 600-seat facility in Mumbai and 1,500-2,000 seat facility in Pune.

Explaining further the Outsourcing firm said that the Mumbai facility would cover up to 22,000 square feet area and would be operational in two months, while the Pune facility would go live in the next 18 months. However, the company is yet to acquire a property in Pune.

Tricom India would be evaluating various options to finance the Outsourcing plan, it said, adding it would be through a mix of internal accruals and borrowings. This expansion would facilitate the Outsourcing company to cater to large orders in the business, which is growing at over 100 per cent per annum.

Earlier, Tricom India Ltd which had set up a wholly owned US subsidiary namely, the Tricom Document Management Inc, is also planning offices in New Jersey and Chicago in this quarter, it said.

Priyanka. S