Central Europe Looks to India to Get Cheaper and Local

Over the past decade, many companies in Western Europe turned to Central and Eastern Europe as their primary destination for low-cost (or lower-cost) country sourcing. Now, companies based in the former Soviet Bloc are looking further East for savings and many Western European organizations are exploring their more global options as well. Consider how Skoda, the car company (not the chewing tobacco provider that a few of my sourcing world friends still quietly enjoy), is turning to India. According to a recent article, Skoda is "scouting for component suppliers in India. We will consider new local partners and suppliers as long as the quality criterion is met." For Skoda, India sourcing is very much a localization play. The auto company is currently sourcing 15% of its volume for the Indian market from India but hopes to ramp this number to 50% over the next three years. I've always found distant similarities between goulash and curry so perhaps there's some historic precedent -- or at least a similar taste in good food -- for greater collaboration between the two regions.

- Jason Busch

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