A latest report states that China is gaining in terms of outsourcing and R&D capabilities. American companies would continue to flock countries such as China for outsourcing of R&D until they justify the costs of making investments.
As the costs are pretty low in China and India as compared to other countries therefore they are enjoying a competitive position in this work. It is expected that China would emerge as an outsourcing giant in the days to come.
For the year 2006, China had a market share of 13.4 % in terms of R&D outsourcing, next only to U.S. China has registered an increase over the previous year as compared to U.S that has registered a decline.
The report further stated:
The same trend will continue in 2007, when the US will be responsible for 31.9 per cent of global R&D and China 14.8 per cent.
It seems that the Chinese dragon would certainly rule the world.
