Wal-Mart to outsource more IT to India

20 February 2008

Mumbai: Wal-Mart Stores Inc has announced that it would increase technology activities in India, as it seeks to expand its remote sourcing model.

According to a statement by the company, it will work with a number of technology firms in India to support its global operations. In August 2007, Wal-Mart set up a joint venture with India's Bharti Enterprises for rolling out wholesale cash-and-carry operations in the country.

The statement quoted vice chairman Michael Duke as saying, "As we deepen our relationship with India it only made sense that we take advantage of the 24-hour development cycle that India offers.''

Reports in the media quoted Duke as saying, ''As we've studied the existing supply chain infrastructure in India we have been amazed by what we have learned. It's a system that works. Yet, there is a need for increased efficiencies that can help minimize wastage, particularly of fresh foods and vegetables. Our goal is to work with India's existing supply chain infrastructure and improve efficiency to minimize wastage and maximize value for farmers and manufacturers as well as retailers. We can help cut the waste, not the middlemen who can play a very important part in the entire supply chain.''

The statement also said that India was one of several countries that Wal-Mart is looking at in its plans to implement a remote sourcing model for IT activities.

Wal-Mart has previously sourced some IT applications from a few Indian technology companies over the last year. The statement also quoted Wal-Mart Executive Vice President and Chief Information Officer Rollin Ford as saying, "We expect India to clearly be a key strategic partner in this area, given its impressive IT capability."