India Sees Retail as Next Offshoring Opportunity

Retail Industry is going to add new dimension in India off shoring Industry, thanks to big boom of retail industry in India itself. Many retail giants are looking to cut their cost and it’s a fact in today’s competitive world every one wants to save even single penny. Retail industry are not only looking towards India for sourcing cheap goods but also for outsourcing some of their core function like Finance, Administration and Supply Chain Management.

Offshoring is all set to take on a new dimension, thanks to the retail boom in India. Retail giants are looking at India, not just for sourcing goods, but for outsourcing their core processes. The retail offshoring business is set to double in the next couple of years from around US$500 million currently.

Leading international retailers, who have looked at India as an offshoring destination for traditional back and front office processes — HR, finance and customer support — are increasingly discovering the country as “hot” for their core processes too.

These include merchandise planning, training, supply chain and loyalty program management, store administration and customer analytics. Says Arvind Singhal, chairman, Technopak, “As global retail biggies set foot here, they would gradually start offshoring niche processes to India from their established bases. This is still at a nascent stage, though.”

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