outsourcing product design for india entry - a strategic approach

7/31/2019 Outsourcing Product Design for India Entry - A Strategic Approach

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ENGINEERING SERVICES ARTICLE

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Outsourcing Product Design for India Entry - A Strategic Approach

It was a Friday evening when Roger Little, an engineering d ivisions head for a mid-sized enterprise, was about to leave

for the day. It had been a particularly hectic week and Roger was looking forward to the welcome weekend break to be

with his family. Just then, he caught sight of the sales manager Carl Mayes, rushing towards him almost as if he held a

billion dollar business deal on the point of closure.

Roger, I simply must speak to you at once!

Carl, protested Roger, its Friday evening and Im on the point of leaving for the day! Ive havent exactly had a

particularly relaxing week as you very well know. Cant it wait till Monday?

As Carls face fell, Roger smiled and found himself softening involuntarily. Okay, whats it about?

You remember our discussion about entering an emerging market like India?

What about it?

With renewed enthusiasm now that he had his engineering heads full attention, Carl explained how he had through hisextensive research, identified sizeable business opportunities in India. These opportunities needed discussions of their

feasibility and the support required from Roger to pursue them.

Roger knew he was already running his engineering team on full capacity, on a constrained budget which was becoming

increasingly difficult to handle. He found himself thinking why not giveCarls strategy more serious thought?

However, at the same time, he also asked himselfwould this really paydividends? How on earth would he address and overcome the practical

difficulties.

Without directly voicing his thoughts, Roger instead asked Carl the details of

the challenges and risks associated with venturing into a strategy like this.

With a sound grasp on the facts and fundamentals, Carl explained to Rogerthe resounding success of many foreign companies that had entered the

Indian market and how they had achieved success by introducing, sustaining and selling their products in the sub

continent.
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Quoting from a reputed business journal (http://news.yellowpages.co.in/danfoss-ramps-up-for-growth-in-india)Danfoss announced the launch of India 2015, a growth strategy that outlines how Danfoss plans to tap further into thefast growing Indian market aiming to triple its turnover by 2015. As part of the strategy, Danfoss expects to invest 500

Million DKK over the next four years in a new R&D and manufacturing facility and simultaneously expand its sales effort

throughout the country.

Referring to another article in Business Today, an equally reputed journal

(http://businesstoday.intoday.in/story/priming-a-difficult-market/0/11161.ht ml), If there is one market that has

tested Grundfos adherence to its core values, it is India. Eleven years later, today, its products have created a Rs 500-

crore market for premium pumps, of which Grundfos controls half.

Carl substantiated further by quoting a few more successful examples of companies like Caterpillar, Emerson and Vestas

If you are an influencer or decision-maker faced with similar challenges, this article will suggest some strategies to

achieve your business goals.

In our last article Product Design Challenges for India Entry , we cited various perceived barriers fororganizations in the area of product design. This article on Outsourcing Product Design for India Entry wil

highlight some points that will help organizations to pursue the emerging market opportunity.

When the product design is carried out for entering an emerging market like India, the outsourcing has to be much more

strategic; identifying and choosing a partner well-versed about the market from various aspects narrated as six key point

in the articleEngineering Design for the Indian Market .

Outsourcing product design has to be strategic due to the complexity and risk associated with it is dependent on the

organizations core knowledge and business assets. Unless it is planned in advance, this will end up in tremendous effortto transfer the knowledge to the vendor.

Though the reasons for outsourcing product design were primarily to reduce costs, improve time-to-market, increaseinnovation and to focus more on core capabilities, its purpose becomes more evident when it is for designing for entering

the Indian market.

The advantages and benefits can be multi-fold; from reducing or eliminatingthe effort and cost in setting up the initial infrastructure for market-study

research survey, competitor analysis, deploying an engineering team to

incorporate these into the product for arriving at a product specification for

localizing the product to the native market.

Engaging a right product design partner can not only minimize the

investment cost and risk associated in this project but also can accelerate the

product launch time to a greater extent.

BWIR had assisted many customers in the industrial machinery and

equipment space to design, develop, manufacture and introduce their

products in the Indian market. Look for our study in the upcoming article on how a Europe-based manufacturer designed a

product for entering the Indian market and realized the benefit of cost and speed-to-market.
http://news.yellowpages.co.in/danfoss-ramps-up-for-growth-in-indiahttp://news.yellowpages.co.in/danfoss-ramps-up-for-growth-in-indiahttp://news.yellowpages.co.in/danfoss-ramps-up-for-growth-in-indiahttp://businesstoday.intoday.in/story/priming-a-difficult-market/0/11161.htmlhttp://businesstoday.intoday.in/story/priming-a-difficult-market/0/11161.htmlhttp://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX1Byb2R1Y3REZXNpZ25DaGFfNjEwMi5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX1Byb2R1Y3REZXNpZ25DaGFfNjEwMi5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX1Byb2R1Y3REZXNpZ25DaGFfNjEwMi5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX0VuZ2luZWVyaW5nZGVzaWdfNjA4Ny5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX0VuZ2luZWVyaW5nZGVzaWdfNjA4Ny5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX0VuZ2luZWVyaW5nZGVzaWdfNjA4Ny5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://eb18.emailsparkle.com/sendlink.asp?HitID=1342001652366&StID=81800&SID=1&NID=1145208&EmID=203869527&Link=aHR0cDovL3d3dy5id2lyLmNvbS9maWxlcy9CYXJyeS1XZWhtaWxsZXJJL0ZpbGVDYWJpbmV0L1VwbG9hZEZpbGVzX1Byb2R1Y3REZXNpZ25DaGFfNjEwMi5wZGY%3D&token=4b02e093a9b5cf2d55bd043304e4e9dd3340b569http://businesstoday.intoday.in/story/priming-a-difficult-market/0/11161.htmlhttp://news.yellowpages.co.in/danfoss-ramps-up-for-growth-in-india


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Barry-Wehmiller International Resources8020 Forsyth Blvd., St. Louis, MO 63105 (314) 862-8000

[email protected] www.bwir.com


The wri ter is handling the business operations for the European Market and provides engineering and design consultancy for th ecountries strategizing to enter emerging markets like India. You can reach him at [email protected] the below contact

number for any queries.

About Barry-Wehmiller International Resources

Barry-Wehmiller International Resources (BWIR) is a global provider of business and technology solutions to the mid -markemanufacturing domain. With headquarters in St. Louis, Mo., and global delivery operations strategically located to meet custome

needs throughout the U.S., Europe, Southeast Asia and South America, BWIR offers world-class engineering services and enterprisconsulting solutions that enable its clients to achieve a competitive edge in their marketplace.

Vivek MaladkarManager Business Development Europe

Email: [email protected]

Office: +44-11-58882522

www.bwir.com
mailto:[email protected]:[email protected]://www.bwir.com/http://www.bwir.com/mailto:[email protected]:[email protected]

outsourcing product design for india entry - a strategic approach

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