UTi Worldwide banks on India for outsourcing IT solutions

UTi Worldwide, a global logistics and supply chain management company, has begun to increase its information technology (IT) sourcing from India in addition to its existing in-house IT division in South Africa.

The company, which set up business in India in 1999, has grown to become one of the largest International Air Transport Association's (IATA) outbound freight handlers taking care of supply chain requirements of companies in pharmaceutical, fashion (apparel), engineering and electronics, chemical and automotive industries.

"Through IT sourcing and product development done in India, the company has been able to personalise and develop products like inventory planning and management, pick and pack, warehouse and distribution for companies in various sectors," M J Wessels, deputy chairman, UTi Worldwide told Business Standard.

All these years, the company was focussed on transaction based business, but more IT application in logistics and supply chain has led us to give more emphasis on value-added service for customers, he added.

Presently, the company has proprietary IT systems, relationships with transportation providers and expertise in outsourced logistics services to deliver competitive advantage to each of its customers' global supply chains.

According to Shesh Kulkarni, president, UTi Worldwide-India, since inception in 1999, the company after strategic acquisition of Indair Carriers in 2003, has been growing organically.

Total IATA Indian market is valued at $700 million of which UTi-Indair has a combined share of $68.15 million, with a 9.74 per cent market share.

"This buying power, in conjunction with its market position, has allowed UTi India to offer competitive pricing on all of its products, delivering more value to its customers," said Kulkarni.