R&D offshoring biz to India seen at $13 b

R&D offshoring biz to India seen at $13 b

Further, it has pegged the overall Indian R&D services market at US$11.80 billion with telecom and ISV verticals forming nearly 50 per cent of the overall spend. Likewise, pointing out that US continues to lead R&D outsourcing, it observed that organisations in most verticals continued to spend nearly same percentage of their revenues on R&D through recession, demonstrating the strategic importance of R&D.

India, it said, continues to score over rival China as the most sought after destination, due to availability of highly talented workforce and cost savings, while China benefits from domestic market attractiveness.

The findings further state that last 18 months have seen the emergence of macro themes that are driving growth in R&D service providers community such as convergence and mobility, emerging markets, cloud computing, enterprise adoption and green initiatives. Similarly, it noted that, two-thirds of the R&D outsourcing work in India are towards MNC captive centres, while one-third is to R&D service providers.

In this regard, the findings ranked Wipro at the top as the most sought after service providers, followed by HCL, Patni, Infosys, Mahindra Satyam and MindTree, among others.

Among verticals software and ISVs led the R&D spend with US$3,569 million, followed by telecommunications with US$2,814 million, while semiconductor sector saw US$1,168 million, industry automation US$1,237 million and computer peripherals & storage US$1,000 million.