(a) whether outsourcing is becoming an increasingly essential tool in the shipping
industry;
(b) if so, the details thereof and the reasons therefor; and
(c) the present status of outsourcing in the country particularly with regard to the
shipping industry?
MINISTER OF SHIPPING (SHRI G.K. VASAN)
(a)&(b): The Shipping industry operates in globally integrated and highly competitive market
characterized by cyclical troughs & booms. In order to deal with the competitive market
challenges, operational efficiencies are optimally achieved and market risks equitably spread
among various participants. The ships may be registered in one country, owned in another
country / by another party and manned and managed in yet another country, by yet another party.
Outsourcing of various activities in this business is therefore required from time to time with
regard to management of vessels, manning of vessels, sourcing of goods and services, etc.
(c): At present, the outsourcing in the country in Shipping industry is in line with the
international practice.