Retailers focus on India
When it comes to outsourcing IT services, India is where the action is.
The outsourcing boom in the country is opening doors for other industries
as well such as retail.
JC Penney recently announced it will increase the amount of material it
outsources to India. The US apparel maker is confident that the textiles
industry in the country will grow when it begins to phase out an imposed
quota by next year.
The retailing giant had said that it would enhance its apparel sourcing
from India to about $600 million in the next two to three years.
China was priority for JC Penney before but is now focusing on India as
the former has just joined the WTO and still had to face safeguard
provisions.
Like China, India has also been getting the attention of a lot of
retailers because of the growing per capita income. Economic boom equals
increased spending power equals booming sales.
US clothing apparel brands and retailers like Wal-Mart are reportedly
opening a number of stores in places like Bangalore and other tech hubs.
Although India's one billion population has a per capita income only half
that of China, it's estimated that there are roughly 150 million middle
class consumers - many of them belonging to the outsourced services
sector.
