Outsourcing bane of leather industry

OBSOLETE management practices, outsourcing of work and fly-by-night operators are the bane of the Indian leather industry, a recent study by the Council for Leather Exports (CLE) has revealed. The analysis, which mainly covered the eastern region, particularly the city-based units, found that the industry largely outsourced its work on the grounds of cost-effectiveness. However, this had resulted in a lack of standardisation as the companies were seldom in a position to implement stringent quality control measures on their own. While the industry has argued that since the nature of business, at least from the exporters' point of view, is mainly seasonal, there is little point in carrying the burden of an entire workforce. Some industry experts have, however, dismissed the argument, describing it as just an excuse for not wanting to invest in technology and human resources. The leather industry mainly comprises family-based units.