With competition steaming up among multinationals and the product life cycle of products getting shorter day by day companies are now focusing on their R&D and therefore R&D management is gaining importance. Companies have now started to outsource various functions such as R&D and design and this has enabled them to focus on their core functions such as marketing and sales.
Companies have been outsourcing their R&D functions since it has enabled them to gain on costs and at the same time get quality results coupled with strengthening of process development expertise and infrastructure. R&D outsourcing has achieved further impetus due to the emergence of global sourcing strategies of MNCs which has enabled companies to serve various markets.
Bigger companies such as Alcatel and Intel have increased their R&D investments and set up their centers in a number of developing countries. All this points out that R&D outsourcing is in and companies are quite comfortable with it.
Via Bangkokpost
