According to a study by Ireland-based leading market research resource, Research & Markets, India is now well on the road to becoming the worlds favourite destination for outsourcing.
But a low cost advantage does not spell sustainability. Moving away from call-centres and other low-end services, firms are now beginning to exploit the intellectual calibre that is available in India, the study said.
Evidence of high-end outsourcing is evident from the large number established R&D outsourcing centres in India.
This report looks at various aspects of R&D outsourcing industry in India, with special focus on the R&D outsourcing scenario in the IT, telecom, auto, research and pharmaceuticals sectors. Estimates for R&D outsourcing in India, with forecasts till 2007 for the IT, telecom and pharmaceutical sectors, are also provided.
The report examines the key drivers and inhibitors impacting the growth of R&D outsourcing, prospects for growth and key success factors. Success stories of some of the major companies like Texas Instruments, Microsoft, Cisco and GE, which have set up large R&D centres in India, are also provided.
The report is based on secondary data as well as extensive interviews with key people at the Indian R&D centres, to understand reasons for success/failure and other attributes of the successful companies.
This report will help companies setting up offshore R&D centres understand the key success factors; or what they need to do to make their offshoring efforts successful - from selection of key people, cultural issues, location, links with educational institutions, support from parent company, dos and donts.
Outsourcing of services has considerably helped Indias image as a business destination. The availability of English speaking, low-wage, skilled labour, are the most often cited reasons.
According to the report, the factors driving the increasing momentum of R&D offshoring/outsourcing industry are: availability of highly-skilled manpower; cost-effectiveness; proximity to fast-growing Asian markets etc.