| The Indian Apparel and Textile industry is largely | | | | retailers world-wide, it needs to emulate the IT |
| fragmented with the largest player having less | | | | strategy of the auto-ancillary industry.Thirdly, |
| than 2% of the market share. Apart from | | | | Indian apparel companies have grown from family |
| contributing the highest net export earnings (16 | | | | run to professionally organized set ups, giving |
| percent), it contributes about 14 percent to the | | | | more emphasis on implementing IT solutions to |
| total industrial production and 4 percent to the | | | | increase the productivity and also providing us |
| GDP. It is a labour-intensive industry that provides | | | | considerable domain expertise.Finally, institutions |
| large-scale employment especially for women | | | | like NIFT, ATDC, ALT, Pearl academy etc played |
| since it is non-hazardous, thus creating a | | | | a pioneering role in training large number of |
| level-playing field for them in terms of job | | | | professionals for the industry.Many believe it is |
| opportunity. It is the second largest employment | | | | only a matter of time before an Indian company |
| provider in India after agriculture. (Annual Report, | | | | scales to become the largest software company |
| 2005-2006, Ministry of Textiles).For an industry of | | | | globally catering to the apparel industry.In this |
| this stature and size, the usage of IT by the | | | | scenario, it is only logical that the Indian apparel |
| Indian apparel industry has been woefully | | | | industry is able to derive benefits of the |
| inadequate. North American and European apparel | | | | acknowledged strengths of the Indian software |
| companies spend about 3 to 5% of their | | | | industry.Indeed it can be argued that, investment |
| revenues on IT. The Indian apparel industry in | | | | in software to create a nimble enterprise that |
| contrast, has typically invested less than | | | | responds to external and internal customers in |
| 1%.Historically there have been many reasons for | | | | real time to reduce throughput times, costs and |
| this low usage.1) Earlier most of the software | | | | improve quality is India's defense against China's |
| suppliers in the Indian market have been North | | | | huge factories that derive benefits from |
| American or European companies for e.g., in the | | | | economies of scale. This is especially true as India |
| case of CAD, the earliest vendors in the Indian | | | | is likely to continue to excel in high value added |
| market were Gerber and Lectra. In 1995 CAD | | | | styles of smaller order quantities.There are |
| solutions were available for about USD 45000! | | | | already a number of functionally rich, user friendly |
| Today the same solution is available at USD | | | | software applications available in India. For e.g., |
| 15000.2) Earlier vendors had proprietary solutions | | | | REACH CAD, REACH Fashion Studio, REACH |
| that were not compatible with other applications. | | | | Merchandising Manager, REACH Cut planner etc |
| Customers who bought a CAD system had to | | | | are offered by REACH Technologies and are |
| buy it from the same vendor the next time; this | | | | being used by over 450 clients across the |
| was used for 'vendor lock-in'. Often this meant | | | | country.We are already witnessing the emergence |
| that the vendor had no incentive for quality | | | | of companies like REACH that offerOPEN |
| support or for innovative research leading to | | | | solutions: Software applications that will 'talk' to |
| reduced prices.3) The small pool of professionals | | | | applications from other vendors as well.MODULAR |
| trained on IT applications of the apparel industry | | | | solutions: Software solutions that are part of a |
| meant there were not enough people who could | | | | larger suite enabling the customer to choose to |
| be recruited from the market in case someone | | | | deploy what is required as and when |
| changed jobs.Fortunately for India, a lot has | | | | required.EXTENDED PRODUCT SOLUTIONS: |
| changed. Firstly, the Indian Software industry has | | | | Products do not deliver value on their own. |
| come of age and India is widely regarded today | | | | Trained professionals in conjunction with the |
| as one among the hottest destinations for | | | | product do. So the vendor who brings to the |
| software engineering. Almost all software majors | | | | table the best delivery and commissioning |
| including IBM, Microsoft, and Oracle have | | | | capabilities will have an edge.RENTALS: Customers |
| engineering and R&D centers in India | | | | will increasingly expect to have solutions 'ON |
| today.Secondly, the Indian Auto-ancillary industry | | | | DEMAND' that is they need the solution for a |
| is a close parallel. This industry has emerged as a | | | | specific time period. They are unwilling to make a |
| leading sourcing destination for automobile majors. | | | | capital investment but willing to pay for using the |
| Despite the mounting steel prices and the fact | | | | solution on as 'Pay-As-You-Go' basis.Indian apparel |
| that steel is a major component of the | | | | industry will increasingly partner with the Indian |
| automobile cost; the vehicle costs have remained | | | | software industry in its quest to become a global |
| stable. Are you wondering how? Well, this has | | | | player in the post-quota era.Visit us at MS |
| been made possible because of IT adoption by | | | | REETHIKA SUNDAREM, graduated from Osmania |
| the Indian spare-part suppliers. IT has enabled the | | | | University. She went on to do her Post |
| Indian auto-ancillary industry to streamline their | | | | Graduation in Management from IIM Ahmedabad. |
| processes and aggressively cut costs. For the | | | | She enjoys reading English fiction, non-fiction and |
| Indian apparel industry to emerge as the favourite | | | | writing articles on various contemporary issues. |
| outsourcing destination for leading brands and | | | | |