Compressed New Product Development Cycle & its Impact on Outsourcing Decisions in Auto Component Industry

The compulsion to continuous development of new product has resulted in compressed product life cycle.A consequence of this compressed product life cycle is the time crunch or the “schedule pressure” that the new product development (NPD) team in a company confronts. The time-to-market or schedule pressure can be one of the main reason of increasing outsourcing activities related to NPD as outsourcing brings together multiple best-in-class suppliers work simultaneously on individual components of a system and gives the company required flexibility in regards to NPD .The main hypothesis of this paper is to find out whether schedule pressure on NPD encourages outsourcing. The study aims to explore the impact of schedule pressure in NPD in the auto component industry. The other aim isto assess the relationship between schedule pressure in NPD and the outsourcing decision