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R&D moves offshore

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Dave » 14 years 43 weeks ago

Research and development is increasingly becoming a global commodity, according to eWeek (June 26, July 3 2006). Typically, research and design has been held close, with engineering outsourced and following explicit directives. However, companies large and small are finding that there’s plenty of talent to be found and they can bring products to market faster by tapping skilled researchers from around the globe. “It’s not body shopping, but brain shopping.”, said an analyst. It’s important to look at outsourcing as an extension of what you’re doing, not as turning over responsibility completely, said a CEO that was quoted.

R&D outsourcing in India went from a $1.7 billion market in 2003-2004 to $2.8 billion in 2005-2006. Outsourced services include the design and development of semiconductors, embedded systems and design services for the manufacture of automotive and aircraft components, consumer durables, industrial products, and machinery.