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Outsourcing to India-The new trend

pawanmj

Plastic
Joined
Apr 17, 2016
Other than the cost benefits what are the other expectations from India (the new manufacturing destination) so that America & Europe would prefer outsourcing/subcontracting their jobs.
 
I remember the post about the India lathe chucks being made on ancient near junk machines with very poor process. Likely sould to US guys.. but yes any country can do anything nowadays.
With so much being done CNC making the labor cost a smaller percentage it would seem more would be coming back to the USA.
I think it a shame that Intelligent people like in India would, have to work for next to nothing.
In the USA a worker can have a house, a car, perhaps a small boat or other hobby, go on vacation, pay medical costs.
It seems the India worker is often a few pay weeks form staving..

Perhaps I have this wrong.. What say you?
 
Other than the cost benefits what are the other expectations from India (the new manufacturing destination) so that America & Europe would prefer outsourcing/subcontracting their jobs.

you haven't even said what you making? and wtf the does it matter that its from India? End of the day, no one really cares that its India or China or wherever. Come up with a compelling value proposition better than the next guys. what business do you want to be in? Price competing with the Chinese? Think man! Instead do something incredible - make a new lathe as nice as a Schaublin with every accessory for $1700 and you'll have a stampede.....vs just turning out garbage and being cheaper than the Chinese.

Next brand it properly. Made in India to us in NA currently = crap. Goods are not made by a country, they're made by company. So make your brand mean something and leave "made in india" behind as the meaningless nothing that it should be. Of course if the model is to make cheap garbage its a moot point lol

Competing only on price is the worst business model on the planet so you need to figure out something better or different. Make the best the stuff on the planet, or give a 15 year warranty, or invent something or whatever. That's your job to come up with the winning strategy - you don't really expect to receive the winner from an internet forum question?

None of the above will be easy....but the easy strategies (junk for a low price) suck.
 
Other than the cost benefits what are the other expectations from India (the new manufacturing destination) so that America & Europe would prefer outsourcing/subcontracting their jobs.

You've started 7 threads and posted 16 times. Not learning enough at school?
 
Indian workers' pay is low, but sufficient enough for a decent living. They can own a small house and a bike. But definitely they do not earn as much as the workers in US. I disagree on CNC thing. Per hour cost of CNC machining in india is less than 10$. Whats it in the US?
 
Hi Mcgyver, I am an Engineer working for the Indian space program (which sent an orbiter to MARS in maiden attempt). You are right that its senseless to compete in price when it comes to manufacturing. India has got a good talent pool in Engineering coupled with low labor costs. I plan to bring together the best Indian manufacturers in almost 20+ processes (CNC machining, sheet metal, die casting, injection molding. etc), ensure they maintain stringiest quality norms, and create a platform for placing-tracing orders, all with professional customer support. The USP is to assure impeccable quality standards for the products manufactured and ship them to whichever part of the world the customer lives in.
I am currently studying the NA and European markets for this model and would appreciate any honest opinions and views from you and your contacts.
 
OT: [Make the best the stuff on the planet, or give a 15 year warranty,]

Not just India but what about the stuff (Junk) that does not make day one or do what is advertised or expected?

Countries with having a value added tax might do well with low labor goods. Here in the US the retailer gets top profits and we the consumer save little with losing manufacturing jobs.

Trade with a like living standard country retains one's living standard.. going to the lowest eventually leads to all workers living the same. So not so good for USA workers.

I would bet your dream is to come to the USA to be an engineer here. why?
 
Countries with having a value added tax might do well with low labor goods. Here in the US the retailer gets top profits and we the consumer save little with losing manufacturing jobs.

We have a VAT of 25% and yet we do more than OK.

List of countries by tax rates - Wikipedia

VAT Per Country | Value Added Tax Rates By Country | USCIB

IMO it's only a question of how countries collect taxes. VAT makes sure all pay/contribute and as the richest people buy the most expensive goods they pay more.
 
QT: [Money. Wonder what else the reason could be?]
Was hoping the OP would have said that.

Thought that is what I said about the VAT, the VAT makes some good of low cost products because the country make some on the difference.

But still I would not like to add a new tax, perhaps replace some other tax. Any new tax and we would just invent a new way to spend it.
 
What would concern me is the remenance of the old caste system. I haven't discussed this with a knowledgeable person lately, but if it is still a factor, it could seriously affect manufacturing.

Tom
 
Thing that makes it easy for me to compete and win against outsourced stuff to india is quality, its a constant crap shot stuff from there. China stuff, can be cheap or good, but its generally constant from a given source, ie find a chinese supplier of a product thats good enough it remains that way. India theres just no telling from one order to the next if the bits will be any good or not. Hell even in the same order the quality can vary from scrap to great bits.
 
Money. Wonder what else the reason could be?

Money is not everything. For an engineer the opportunity to work on exciting projects at times outweighs money. The US still has some of the most exciting technologies available. For example if you are a mechie woking on the Boing 787 could be a dream. try that in China. Or if you are a chip desinger there is only one company that still does fundamental engineering in microprocessors. You have to work for iNtel in the US to be part of that. And the list goes on.

There is also scale and depth that is just not available anywhere else. I for example have the opportunities to work with hospital systems that have many millions of patients and hundreds of facilities. That sort of scale is hard to come by in a country where there are no such facilities.

dee
;-D
 
It looks like perhaps 50% of India engineers cant find work and with working they don't do very well, so a guy working on a Mars rocket likely a best job. but still an engineer working in the USA just down the street might have the better house, boat, better choices and the like.
Just saying the India worker life might not be as rewarding as the USA life. Certainly not as rewarding as the Denmark life.
What makes products so low priced may not be so good for workers in general.
 
If you want to make us feel better about india (and I rather loose a job to a democrat india then a at times borderline hostile communist hybrid china)....... Then do something about your engineering students coming on the forum asking us to do there homework for them.
 
OT: [at times borderline hostile communist hybrid China).......] When and if push comes to shove I think China will return to it's natural state.. But I think China will be strong to protect it's borders. Russia on the other hand will pass it's borders any time it feels it can get away with it.

Owing China money is dangerous.."That is the people's money so you (we) better pay up or else."

And then there is Isis. They don't care about killing everybody.
 
I remember the post about the India lathe chucks being made on ancient near junk machines with very poor process. Likely sould to US guys.. but yes any country can do anything nowadays.
With so much being done CNC making the labor cost a smaller percentage it would seem more would be coming back to the USA.
I think it a shame that Intelligent people like in India would, have to work for next to nothing.
In the USA a worker can have a house, a car, perhaps a small boat or other hobby, go on vacation, pay medical costs.
It seems the India worker is often a few pay weeks form staving..

Perhaps I have this wrong.. What say you?

My dream benchtop Lathe used to be the Schaublin 102N VM. I found 2 online, thought neither were for sale. 1 was at a Polytechnic in France and the other was in India. I've seen (seen online) lots of Swiss and German machinery in India, and note ancient stuff either but 70s , 80s ,90s stuff. They also have Japanese and European modern CNC machines. So it's a mixed bag: some manufacturers have modern stuff and some have stuff from 20-30 years ago.

Now as far as dealing with India in getting things done/made etc.. I would cringe at it. I am originally from Ceylon and in my experience most of service providers are crooks , cutthroat scamming crafty incompetent lying pricks. And after living for almost 17 years in the MidEast I would hate to have business dealings with folks in the MidEast too.
 
It is not my dream to come to USA to be an Engineer. If it was, I would have already been one.
 
Want to know more about your experience. What did you outsource? And through which medium have you found the Indian manufacturers you worked with?
 








 
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