Benefits and challenges of outsourcing in electrical appliances industry: Case study of Videocon- India.

raheja, vaibhav (2010) Benefits and challenges of outsourcing in electrical appliances industry: Case study of Videocon- India. [Dissertation (University of Nottingham only)] (Unpublished)

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Outsourcing as a practice is becoming common by every passing day as firms try to outsource in order to meet their corporate goals. Outsourcing provides several benefits such as lowering of costs, improved focus on core functions, access to latest innovations etc. But despite its potential benefits, many outsourcing firms fail to realise these anticipated benefits. Only the firms which are able to manage outsourcing functions and align it with the corporate strategy are able to realise the full benefits of outsourcing.

Videocon lost significant market share with the arrival of foreign multinationals which took over the Indian electrical appliances market by storm in mid 90s. After this shock, Videocon reviewed its strategy and managed to regain its lost profitability and growth rate. Outsourcing played a vital role in this reviewed Videocon strategy and is continuing to do so. This research investigates different aspects of Videocon's outsourcing strategy, the challenges it faces due to outsourcing and its future strategy regarding outsourcing. This research aims to investigate how firms manage outsourcing functions and how firms incorporate outsourcing in corporate strategy. Research is undertaken using qualitative research strategy involving semi structured interviews with high level executives in Videocon.

This research finds that corporate strategy is the main driver of Videocon's outsourcing activity followed by flexibility of expanding the product portfolio. Cost is an important but not the most significant driver of Videocon's outsourcing strategy. This research finds that outsourcing will continue to play a vital role in Videocon's strategy in foreseeable future but Videocon will also look to reduce its dependency on external suppliers. Videocon adopts a relationship building strategy for outsourcing and aims to reduce the risks in its outsourcing value chain.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 20 Jan 2011 11:59
Last Modified: 30 Jan 2018 17:29

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