Electronics Production | December 13, 2007
Electronics professionals suggests careful<br>studies of India before establishement
Purchasing professionals familiar with the business environment in India suggest careful study as they set up sourcing operations there.
Canada based EMS provider Celestica builds telecommunications office equipment and automotive systems at its facility in Hyderabad, India. John Boucher, chief procurement officer at EMS Celestica, told Purchasing.com that there is limited semiconductor production and passive component production in India. Celestica buys build-to-print items from suppliers in India which are heavier items where there is a benefit in sourcing locally according to John Boucher. He has full-time people in India trying to find suppliers with the right capabilities. Solectron is currently developing its own approved vendor list in India. According to Charlie Barnhart, senior consultant for Technology Forecasters, the logistics problems in India are the same, if not worse, that China faced a couple of years ago. Although, he did point out some pros for India. The work force has more education and he thinks India culturally has a longer tradition of commerce, more of a free market kind of mentality than China he told Purchasing.com.