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India is clearly the destination of choice for business processing services across all industries.

New Delhi , Sept. 27

WITH India emerging as a preferred destination for business process outsourcing, auto companies worldwide are also looking at the country to move certain non-manufacturing business processes.

A survey of 40 senior automotive executives conducted by the Global Automotive Practice of management consultancy firm AT Kearney found that nine out of ten executives surveyed in North America say that they intend to move non-manufacturing processes to low-cost offshore locations.

The most popular destinations for the migration of business processing activities found were India (with 24 per cent executives voting in its favour), China (15 per cent), Mexico (13 per cent), Brazil (10 per cent) and Czech Republic (8 per cent). "India is clearly the destination of choice for business processing services across all industries. There are tens of thousands of well-educated, English-speaking and highly motivated engineering, IT, and accounting professionals in India with the skills and capabilities auto manufacturers and suppliers need for offshore business processing," Mr Nagi Palle, co-author of the research and a principal at AT Kearney said.

"Done right, offshoring for select engineering, information technology and other support functions to India, for instance, can reduce automakers' and suppliers costs by nearly 50 per cent compared with doing the same functions in the US," Mr Richard Spitzer, Vice-President in AT Kearney's Global Automotive Practice and co-author of the study, said.

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India key BPO destination for auto firms, says study

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