Monday, March 5, 2001
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DaimlerChrysler to outsource IT services requirements from india 

Our eFE Bureau  
Pune : DaimlerChrysler AG is looking at India for outsourcing it IT services requirement, particularly in the area of engineering sevices, e-commerce, embedded software and infotainment (telematics, office on wheels, intelligent cars among other things), ERP and Product Data Management.Dr Rainer Balbach, general manager, global procurement and supply, said the DaimlerChrysler AG Purchasing Liaison Office India in Pune carried out investigations of the IT market during year 2000 for finding out the potential suppliers for IT services. Around 50 IT companies have been shortlisted by them and the DaimlerChrysler AG audit team will be taking a look at these companies and prune the list further.

DaimlerChrysler AG Purchasing Liaison Office India, Pune is the extended arm of DaimlerChrysler AG Germany's purchasing department. The purchasing office looks at offering cost savings to DaimlerChrysler worldwide by procuring automotive components and IT services from India. The Pune liaison office is also member of Asia Procurement Team along with China, Malaysia, Thailand, Japan,Singapore and Indonesia contributing to the Global Sourcing Network.Dr Balbach said the company was looking at outsourcing to access capacity, reduce development time and cost savings to DaimlerChrysler.

The company started exports from India from 1998. During 2000 the company achieved an export turnover of $30 million. The major components are wiring harness, rubber parts, starter motors and fasteners. The company is targeting around $3 million from export of IT services. The DaimlerChrysler Research Centre (India) in Bangalore will also be expanding to meet the parent company's requirements.

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