India's Manufacturers to Invest in White Collar Jobs to Cut Costs

To cut costs, India's manufacturers are looking at increasing white-collar productivity and redeploying staff, reports the Economic Times.


AK Taneja, MD and CEO, Usha Pistons and Rings, which manufactures piston rings, told the Times that "white-collar productivity has the biggest bearing on cost, even more than blue collar." Taneja cites that in the area of product development, the design stage is a white-collar area. If productivity is improved in this stage, time to development is reduced and no re-work is needed.


Another Indian manufacturer tells the Times that companies are increasingly re-deploying people, not sacking them. “If you start sacking people for productivity improvement, you are headed for losses. White-collar productivity improvement is achieved through redeployment,” CP Rangachar, MD of Bangalore-based machine tool maker Yuken India, told the Times.



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