Outsourcing- The Emerging Trend in the Automobile Industry


India’s automobile industry is one of the most capital-intensive sectors concentrating more on re-investment in capital expenditure and research & development at regular intervals. Now it is going through the neck to neck competition and needs to explore techniques for fuel efficiency, low maintenance, durability, and comfort. Automobile firms, in general, tend to outsource their work and concentrate on their main activity of product design, research and development, marketing, distribution, and after-sales services.
manpower-outsourcing-imagePersonnel management and raw material management in the Automobile sector are the most comprehensive and highly organized activities upon which the entire panorama of the automobile sector’s performance depends. With the growth of the automobile sector in India, a right solution for both job out-sourcing and staff outsourcing is trending upwards. Out-sourcing service providers opt for the most structured and meticulous processes of staff outsourcing and job outsourcing. This helps in minimizing loss of man-hour and wastage thereby optimizes production.

Outsourcing has the following assured benefits for the Company.

benefits-of-manpower-outsourcing -image

Focus on core activities:

  • Service providers as specialists not only carry out the manpower management and operation management task with greater efficiency but also do it economically.
  • Companies can delegate the tasks to the vendors and focus on important goals that are of greater value.

Innovation culture:

  • The decision makers have more time to concentrate on Research and Development.
  • They can focus better on their brand recognition through market initiatives.


  • Outsourcing plays a very important role in the optimization of resources.
  • It also helps to reduce cash outflow on a day-to-day basis resulting in better fund management

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