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OUTSOURCING

Questions & Answers

What are the benefits of outsourcing?
When is the time to make a business decision of outsourcing and importing?
What to look for in an outsourcing partner? 
What makes an effective global trade strategy?
What makes India an ideal country for outsourcing?
What makes GNN an ideal outsourcing partner?
Who can utilize GNN services?

What are the benefits of outsourcing?


The cost savings associated with strategic outsourcing not only give a business an edge over its competition, but has become crucial for the survival of many businesses. From the more obvious benefits of cost reduction and quality improvement, outsourcing delivers a client a number of advantages all the way up to value generation and innovation capability in core competencies. The five key improvement areas are:

1. Cost

The cost benefits of outsourcing are obvious in terms of cheaper labor and material costs. In case of variable sourcing contracts, the costs can be reduced further in the form of higher productivity of employees. 

2. Quality

Most outsourcing vendors have a better process maturity in their core areas as compared to the client. As a result, such vendors can deliver high quality products.

3. Time to Market

One of the major benefits of outsourcing is to reduce the time to market for any products or services of the client. 

4. Focus on Core Competencies

The whole objective of outsourcing is to enable the client company to concentrate on its core competence. By outsourcing your products to a company that specializes in that area, the client company significantly reduces its management involvement in production issues, thereby freeing such resources for core business activities.

5. Value Generation

In order to extract more value from its products, the company can measure the return on its investment. By doing so, it becomes clear to both the vendor and the client as to what are the key value parameters for the project and for the outsourcing relationship. This in turn helps both parties to monitor and plan for maximum value in the engagement.

To summarize, outsourcing can deliver a wide range of benefits to clients, when they do it right. It is important, for clients to clearly prioritize and rank their expectations.

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When is the time to make a business decision of outsourcing and importing?



There hasn't been a more compelling time to outsource, especially, if:
  • Your margins are under pressure, thanks to ever rising manufacturing and labor cost.
  • You would prefer to focus corporate energy on mission critical issues.
  • Your current suppliers are getting too expensive and not meeting your performance criteria.
  • It may result in savings to the tune of 50% - 100% (in an apple-to-apple comparison)
  • If you wish for increase in bottom-line positive results due to reduction in overhead, and increase in productivity.

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What to look for in an outsourcing partner?



To succeed in outsourcing ventures, companies should follow some basic guidelines: 
  • Agree on the scope of the contract.
  • State at the outset what constitutes success.
  • Devise a contract that identifies the measurements to gauge performance.
  • Maintain a flexible contract so each party can easily adapt to change without major confrontation.
  • Build a partnership that allows for negotiation and communication.
  • Share goals, risks and rewards.
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What makes an effective global trade strategy?



Studies indicate that following factors are critical to the effectiveness of a global trade strategy: 
  • Global trade structures and processes. 
  • Global sourcing business capabilities.
  • International language capabilities.
  • Top management commitment to global sourcing and imports.
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What makes India an ideal country for outsourcing?



Leather industry occupies a place of prominence in the Indian economy in view of its massive potential for employment, growth and exports. There has been increasing emphasis on its planned development, aimed at optimum utilization of available raw materials for maximizing the returns, particularly from exports. The key facts that make India an attractive destination for leather goods outsourcing are
  • The world’s largest technically trained manpower in leather craft is accessible at the world’s most competitive costs. 
  • India boasts of 10% of the world's raw material production.
  • The current industrial policy is very conducive to the promotion of the Indian leather industry both in terms of domestic trade as well as exports. Integrated tannery for conversion of raw hides and skins into finished leather is de-licensed. Except for a few items, many sectors are de-reserved.
  • Decent Infrastructure: International airports, well equipped sea ports, and well placed communication network.
  • Increasing tannery activities and modernization of manufacturing facilities.
  • Exports from India are likely to grow as international brands have started outsourcing products from India
  • Government paying considerable attention to this sector. Export revenues expected to touch US $ 4.5 billion by 2002.
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What makes GNN an ideal outsourcing partner?


  • Quality is GNN’s fundamental operating philosophy. We never stop refining our business process to deliver optimal overall quality of service. 
  • When you choose GNN as your outsourcing partner, the global outsourcing benefits come to you at local convenience. We have a sales office nearer to you in USA reflecting our commitment to make your business experience with us as comfortable and profitable as possible.
  • As your outsourcing partner, GNN provides you a comprehensive value service that includes but is not limited to innovating, designing, consulting, prototyping, and manufacturing. These services are complemented with our excellent customer support.
  • When it comes to the sourcing of raw material, we have well established relationships with tanneries in India and abroad for the prompt and efficient sourcing of raw material. We are able to provide our products made of leather from multiple origins allowing our customers the freedom to choose the best products to meet their specific needs.
  • GNN leverages on diverse resources available in India to deliver you the world class product quality – cost efficiently and on time.
  • GNN always relies on professional demeanor and courteous customer service to win an opportunity to serve you
  • GNN recognizes the value of its human capital and fully utilizes the abilities of every company employee.
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Who can utilize GNN services?


  • A corporate client looking for a custom leather solution.
  • A manufacturer interested in outsourcing leather goods.
  • A wholesaler or retailer looking for a direct source in Asia.
  • A company engaged in promotional and marketing activities.
  • A freelance designer seeking a manufacturer who would meet her exacting specifications.
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