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Health care industry

India Emerges as Global Leader in R&D Outsourcing for IT

Strategic Insights

— 1 min read

India is rapidly becoming a preferred destination for companies looking to outsource their research and development (R&D) activities, driven by the country's growing talent pool and cost advantage. According to a study by Research & Markets, the R&D outsourcing market for IT in India is expected to grow from US$1.3 billion in 2003 to over US$8 billion by 2010. This surge is primarily attributed to the increasing demand for high-end outsourcing services from companies seeking to leverage India's intellectual caliber.

Key Takeaways:

  • The R&D outsourcing market for IT in India is expected to grow from US$1.3 billion in 2003 to over US$8 billion by 2010, presenting significant opportunities for companies looking to outsource their research and development activities.
  • India's growing talent pool and cost advantage are key drivers of the R&D outsourcing market, with evidence of high-end outsourcing evident from the large number of established R&D outsourcing centres in India.
  • Major companies such as Texas Instruments, Microsoft, Cisco, and GE have set up large R&D centres in India, contributing to the country's reputation as a preferred destination for R&D outsourcing.
  • 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 major companies in the IT, telecom, auto, and research and pharmaceuticals sectors are featured in the report, providing insights into reasons for success and failure.

Statistics:

  • R&D outsourcing market for IT in India: expected to grow from US$1.3 billion in 2003 to over US$8 billion by 2010 (Research & Markets).
  • Number of established R&D outsourcing centres in India: evident from the large number of centres established by companies such as Texas Instruments, Microsoft, Cisco, and GE.
  • Forecast for R&D outsourcing in India: till 2007 for IT, telecom, and pharmaceutical sectors (Research & Markets).
  • Cost advantage in India: driving companies to outsource R&D activities to the country (Research & Markets).

Sources:

  • "The Research and Development Outsourcing Market in India" study by Research & Markets.
  • PTI (Press Trust of India) news article dated 20-09-1935 (note: the date may be incorrect as 1935 is likely to be an error).

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