JOURNAL OF DEFENCE STUDIES

Outsourcing and Vendor Development in the Indian Ordnance Factories

N. Neihsial was on deputation from the Indian Defence Accounts Service to the Institute for Defence Studies and Analyses, New Delhi.
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  • July 2009
    Volume: 
    3
    Issue: 
    3
    Focus

    Ordnance factories are the oldest and largest single organisation in India's defence industrial set up. The organisation is found to be inefficient and uncompetitive from the angles of market share, capacity utilisation, timely delivery of demands, cost of equipment produced, level of technology handled and the volume of exports. While the organisation may retain its structure, it could significantly improve its efficiency and competitiveness by selective use of 'outsourcing' of its production activities in an organised manner. This should be supported by strategy of vendor development as well.

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