Manufacturing companies are deploying an increasing
number of IT systems to cope with global operations, according to
outsourcing company KPIT Cummins Infosystems.
At the same time, the company said IT expenditure was likely to
decrease by at least one percent of companies' total budgets as
manufacturing organisations cut costs by
outsourcing IT operations.
"We expect the level of IT, business process, and engineering
outsourcing to increase four fold in the next five years," said
Kishor Patil, chief executive and managing director of KPIT
Cummins.
He said an increase in the use of enterprise IT systems was
essential for manufacturing companies to manage increasing complex
supply chains as many move production and sourcing of
components to Asia to cut costs.
"Manufacturing companies are also likely to use more IT to
improve services as a way of attracting and retaining customers,"
he said.
Another driver for IT systems within the manufacturing sector,
Patil said, was the increasing need for companies to ensure
compliance with regulatory standards.