Manufacturing as a Service in India
Gobally, there is a strong trend towards outsourcing, in order to balance the production cost and transaction cost of manufacturing. For OEMs, this balance needs to be struck while also practicing due diligence. The general term applied here is XaaS, or Anything as a Service, which applies to any service that can be provided to a customer by a commercial partner. For OEMs, this broad scope can be focused into Manufacturing as a Service.
The nature of a global market means that all vertical sectors operating in multiple regions are subject to variable economic pressures. Locally, those pressure may be quite different but, collectively, they will influence business decisions. In October 2020, India’s Ministry of Electronics and IT (MeitY)approved the applications from ten international mobile phone manufacturers for a share of its Product Linked Incentive scheme, including Samsung, Foxonn Hon Hai, Rising Star, Wistron and Pegatron.