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.