In India — Looking Abroad For Cheaper Suppliers

Recently, I've spoken with a number of people who have complained about the rising costs of skilled labor in India. And along with booming salaries have come sky-rocketing rents (in Bangalore, rents can be higher on a square footage basis that Silicon Valley). Perhaps this explains in part why Tata Motors is looking offshore to lower its supply costs. According to the above-linked news brief, Tata Motors also is said to be looking ... at countries such as China, Thailand and Russia to source components at the most competitive prices without any compromise in quality." In addition, I've also heard stories of late about Indian BPO firms aggressively looking to ramp up operations in lower cost countries (to complement their own centers in India). Later this year, I look forward to making it over to India to investigate first hand how labor and other factors are driving Indian companies to investigate global sources of supply and labor.

Jason Busch

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