The first Industry identified to analyze the outsourcing trends of last 10 years is Dabur.

The company is the fourth-largest consumer packaged goods company in India, offering a wide range of health care, personal care and food products to customers in more than 50 countries. Dabur is also the worlds largest manufacturer of Ayurvedic medicines, which are based on an ancient Indian system of health care and promote natural and holistic living. The company reported 2007 revenues of more than US$543 million. The outsourcing trends of DABUR India Pvt. Ltd. can be analyzed by extracting the datas from last five years pertaining to the raw materials consumed and the cost of sales. Hence the outsourcing ratio can be obtained from both the figures. The data pertaining to the raw materials consumed and the cost of sales from the year 2001 to the year 2010 are summarized in the following table:

COST OF RAW MATERIALS

COST OF SALES

OUTSOURCING RATIO (RM/CS)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

53847.27 51561.04 57756.71 58146.81 65942.25 80772.30 97108.28 110097.35 137617.00 155074.00

33972.71 36457.17 42065.81 39726.00 47691.25 56522.85 48138.98 56568.46 62493.00 82220.00

1.58 1.41 1.37 1.46 1.38 1.43 2.02 1.94 2.20 1.88

Keeping in view the value chain of Dabur, the company has shown a certain degree of sustainability and consistency in terms of its outsourcing trends. The ratio remained consistent from the year 2001 till 2006, hovering around 1.5; however from the year 2007 onwards there was an increase in the outsourcing ratio component giving light to the fact that

even Dabur joined the bandwagon on emphasizing more on the outsourcing noncore activities for efficient supply chain management. Dabur India Ltd. realized it needed to perform better and make faster decisions in order to outpace its peers in revenue and profitability growth. To meet its goals, Accenture proposed that Dabur improve its supply chain management, sales and distribution capabilities and use IT as a strategic enabler for its business strategy. This included migration to a nimbler outsourcing model that would generate value through agility and support business initiatives and maintenance of its SAP ERP system. Apart from the above mentioned fact even Accenture helped Dabur by implementing a new sales and distribution strategy, supply chain management capability, optimizing ERP capabilities and outsourcing IT operations. Dabur is showcasing itself as a high-performance business relentlessly pursuing operational excellence in a number of ways, including:
I.

Competing on core competencies, while outsourcing non-core functions to trusted third-party providers.

II.

Viewing information technology (IT) as a strategic asset that creates real valuesnot simply a cost to be managed.

III.

Streamlining processes wherever possible.