An in-Depth Analysis of Outsourcing Factors From Textile Industry of Pakistan

Abstract

Significance of economy of Pakistan cannot be ignored in Asia. The paper targets the backbone industry of Pakistan. The purpose of the study is to facilitate the Outsourcing practitioners, policy makers, production managers to analyze the outsourcing encouraging factors in the textile industry of Pakistan. The economy is facing a massive industry drain in the past few years as around forty percent of the industry has moved abroad, which become the issue of concern for the state to take effective step to stop further industrial drain, In such situation outsourcing popped up to be suitable remedy to support the industry. The study applies multiple case studies method to identify the exact factors that encourage outsourcing in the economy. By way of in-depth interviews and triangulation confirmation, the textile firms located in industrial hubs of the country were interviewed and qualitative data was gathered. The investigation brought out cost competency, quality enhancement, core competency, firm ownership, geographical location, energy shortage, and political instability along with some other factors to be important in driving the textile firms to outsource. A cross case analysis is also made to compare inter firm outsourcing scenario. The research is based on three textile giants and has come up with exploratory findings which will help to continue the research in future to improve the industry production. The research paper contributes towards the policy making of the country by lightening the path that leads towards the betterment of the textile industry by depicting the core factors which hold behind outsourcing decision and makes its practice justified economically. Keywords Outsourcing, Cost Efficiency, Focus on Core, Energy Shortage, Textile Industry

Catalyzing the Impact of High Cost of Living on Demand and Supply of Textile Industry A Prospective of Emerging Economy

“…The study revealed that a shortage of energy negatively affects the supply and revenue of the industry, as one one-hour shortage of electricity caused the loss of income by about 24%. Arslan et al (2022) examine the impact of the energy crisis and political instability on the performance of the textile industry of Pakistan. The study used annual data from 1992 to 2016 and the VAR model for analysis.…”

“…The recent surge in the cost of living can be seen through food items increased by approximately 40%, housing by 41%, clothing and footwear by 22%, and transportation by 20% in June 2023 compared to June 2022. On the other side, the producers of many major industries like textiles are in trouble; they can't make investment decisions in the long run due to commodity price uncertainty (Arslan et al, 2022). The high cost of living is badly affecting the aggregate production of Pakistan's economy.…”