The civil aviation suppliers market including the components and maintenance is seen growing annually at 16.1 percent over the next five years to top around $3.89 billion ...According to a new research by a global research company . Outsourcing in India will be boosted by Low labour costs and low manufacturing costs. Comparatively to the western countries the labour cost in India is lower says the Frost and Sullivan study, listing the reasons for the projection. The biggest advantage that India enjoys is the geographic placement over the other countries that enables itto cater to the demands of countries in South asia as well as the middle east.The offsets policy of the government can help India attract significant investment." The three segments covered in the research, namely component suppliers, design suppliers, and maintenance, repair and overhaul operations, earned revenues to the tune of $1.36 billion in 2007, says the study. India should build sufficient excess capacity to cater to the demands. Athough gestation periods for the projects tend to be longer, the returns are usually high - in the band of between 15-20 per cent, says the study.
"Local participants lack the technical expertise to execute complex tasks on their own," says Madusudanan. "Therefore, joint ventures with foreign participants will enable local firms to more effectively confront challenges, by ensuring the transfer of technology."
"Local participants lack the technical expertise to execute complex tasks on their own," says Madusudanan. "Therefore, joint ventures with foreign participants will enable local firms to more effectively confront challenges, by ensuring the transfer of technology."