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Essay / Research Paper Abstract
This 4 page paper looks at Tata Automotive and considers why a firm India, the destination of a great deal of outsourcing, uses a strategy of outsourcing. The paper looks at the potential reasons around the outsourcing, at the type of outsourcing that is taking place and the benefits that the company is realizing. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEtataout.rtf
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Unformatted sample text from the term paper:
India having some very evident comparative advantages, it may be expected that a Tata Automotive is accessing those comparative advantages and undertaken all production in house, however this is not
the case, Tata Automotive has an active strategy of outsourcing. In order to consider why Tata is using an outsourcing strategy, despite it s location, it is necessary
to consider why firm undertake outsourcing, one of the main reasons cited by companies that undertake outsourcing is often that of cost. Outsourcing may take place to a region where
there are lower wage and overhead costs as a direct source of savings. However, there are also other reasons for outsourcing to take place this can include direct financial savings,
but it may also include access to resources. One of the tasks outsourcing by Tata was seen right at the beginning of the lifecycle of the Tata Nao, with
the design being outsourced to Italys Institute of Development Initiative Engineering (Boulton, 2007). The Nano was an interesting project, the aim was to design the worlds cheapest care, with
a price tag of $2,500. The car, officially called the Nano, is also known as the peoples car and was unveiled on the 10th of January at the New Delhi
Auto Expo (Overdorft, 2008). The design for this car was very important. There are different ways of cutting costs, but the car
was going to compete against other small cheap cars, therefore the aim was not to cut costs by cutting parts and quality. The car would be basic, but the main
source of cost control was to be with innovations and design. This is an example of how outsourcing can be access to more resources that would be available in house.
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