Comparing Outsourcing-outlook of Manufacturing Firms and Logistiscs Service Providers in India and DACH Countries

Dhanavanth Reddy Maditati, Ziaul Haque Munim, Sebastian Kummer, Hans-Joachim Schramm

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose
According to the logistics performance index, emerging countries such as India are lagging behind developed countries such as Germany, Austria and Switzerland (DACH region). The purpose of this study is to compare and understand the differences in logistics outsourcing outlook in the two regions by considering both manufacturing firms (M-firms) and logistics service providers’ (LSPs) perspectives.

Design/methodology/approach
A survey targeting both LSPs and M-firms in DACH and India is conducted. A total of 96 responses were analyzed by using the chi-square test to investigate the differences and alignments in outsourcing motivation, relationship and governance between firms within and across regions.

Findings
M-firms in India bear strategic motivations behind outsourcing and those in DACH incline towards costs. LSPs in both regions align with the motivations of M-firms. M-firms in India rely more on LSPs by transferring the ownership of outsourced tasks, as compared to DACH. Both M-firms and LSPs in DACH claim a high level of ownership. However, firms in DACH and India do not differ significantly in terms of outsourcing engagements they seek.

Research limitations/implications
The findings may only be generalized to large firms in India and DACH.

Practical implications
The findings of this study help managers enhance their understanding of the differences between M-firms and LSPs, and also across countries. LSPs in DACH, if they wish to operate successfully in India, will have to adapt to the M-firms strategic motivations and offer higher dependency.

Originality/value
This study is novel, as it investigates differences between India and DACH countries while also including both manufacturers’ and logistics service providers’ perspectives.
Original languageEnglish
JournalJournal of Global Operations and Strategic Sourcing
Number of pages23
ISSN1753-8297
DOIs
Publication statusPublished - 15 Feb 2022

Bibliographical note

Epub ahead of print. Published online: 15. February 2022

Keywords

  • Logistics services
  • Outsourcing
  • India
  • DACH countries
  • Cross-country study
  • Manufacturers

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