Nearshoring is a derivative of the business term “Offshoring”. Nearshoring replaces shifting work to a foreign, distant organization in order to reduce production costs. In contrast, it is understood to mean that the business has shifted work to a lower cost organization within its region, broadly defined.

A precise definition of terms like outsourcing / offshoring / nearshoring has yet to be agreed upon. Thus, these terms are used inconsistently. However, outsourcing is often viewed as involving the contracting out of a business function to an external provider. In this sense, two organizations may enter a contractual agreement involving an exchange of services and payments. Of recent concern is the ability of businesses to outsource to suppliers outside the nation, sometimes referred to as offshoring or offshore outsourcing (which are odd terms because doing business with another country does not mean you have to go offshore). In addition, several related terms have emerged to grasp various aspects of the complex relationship between economic organizations or networks, such as nearshoring, multisourcing and strategic outsourcing.

But, whatever be the name you call – our effectiveness as a vendor remains unaltered.
Prakash Lamp Mfg. Co. was established in the year 1968 and Vivek Bulb Industries Pvt. Ltd. was set up in the year 1992 with a view in mind to produce quality lamps at competitive prices. Our quality has been appreciated by National and Multinational Companies in India and abroad. We are bound to NDAs - so, can’t provide more details on this in the web. But we must mention that our customers who are sourcing lamps from us has their own prominent brands in Indian market.

The above story not just speaks about our commitment to quality but also our capacity to meet bulk demands throughout the year.

Through these years we have not just increased our production quantity, but have modernized our plants, adopted ever-changing technology to produce quality lamps in volume. We are not only using technology from Korea for this purpose. We are even importing advanced machineries from them.

Instead of Effectiveness Reasons of Prakash Group, Group Efficiency can be used.

Efficiency of Prakash Group
Organizations that outsource to us are seeking to realize benefits or address the following issues:
  1. Cost savings — The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring.
  2. Focus on Core Business — Resources (for example investment, people, infrastructure) are focused on developing the core business. For example large lamp manufacturing organizations outsource their production support to specialized lamp manufacturing organizations like us
  3. Cost restructuring — Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable.
  4. Improve quality — Achieve a step change in quality through contracting out the service with a new service level agreement. It can’t a “by default” requirement, but surely widens the spectrum.
  5. Knowledge — Access to intellectual property and wider experience and knowledge.
  6. Operational expertise — Access to operational best practice, a larger talent pool and a sustainable source of skills that might be too difficult or time consuming to develop in-house.
  7. Capacity management — An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
  8. Catalyst for change — An organization can use an outsourcing agreement as a catalyst for major step change that cannot be achieved alone. The outsourcer becomes a Change agent in the process.
  9. Enhance capacity for innovation — Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.
  10. Reduce time to market — The acceleration of the development or production of a product through the additional capability brought by the supplier.
  11. Risk management — An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.
  12. Scalability — The outsourced company will usually be prepared to manage a temporary or permanent increase or decrease in production.

Quality Risk
Quality risk is the propensity for a product or service to be defective, due to operations-related issues. Quality risk in outsourcing is driven by a list of factors. One such factor is opportunism by suppliers due to misaligned incentives between buyer and supplier, information asymmetry, high asset specificity, or high supplier switching costs.

Other factors contributing to quality risk in outsourcing are poor buyer-supplier communication, lack of supplier capabilities/resources/capacity, or buyer-supplier contract enforceability. We keep a special vigil on these issues.


Quality of Service
Quality of service is measured through a service level agreement (SLA) in the outsourcing contract. This is to be followed by the process of implementing proper objective measurement and reporting which is being done for the first time. Special guards are taken to avoid lower quality through design to match the lower price.

Quality in terms of end-user-experience is best measured through customer satisfaction questionnaires that are professionally designed to capture an unbiased view of quality. This allows quality to be tracked over time and also for corrective action to be identified and taken.


We are also aware of several issues that a company may face while outsourcing. So, we assure special cares on concerns like

Staff turnover
Language skills
Failure to deliver business transformation
Company knowledge
Public opinion
Standpoint of labor

Share your views. Write to Vivek for more information.
  • To manufacture CFL Lamps, Auto Lamps & Halogen Lamps.

  • Develop and Manufacture LED based Lamps.

  • Integrate the process of handling glass items to reduce breakages and loss.

  • Re-utilize the heat generated by one process into other process.

  • Install Programmable Logic Controllers (PLCs) and digital logic controllers to eliminate low machinery parts which are prone to heavy wear and tear.

  • Install Digital Motor controllers to save on motor power & re-design the machines so that number of motors gets reduced.