Tech R&D Outsourcing Sometimes Succeeds and Sometimes Fails


    Wipro recently held a customer gathering that focused on pure-play R&D services, according to “Wipro says interest in outsourcing is on the rise,” on EETimes’ Web site. The coverage says that 70 technology firms out of 300 or so total customers use Wipro engineers for such services, in areas such as computing platforms, consumer electronics, networking and storage.

    Here’s an interesting chunk of the article:

    Most attendee companies said they outsource engineering service to multiple partners and they would like to see these partners investing more, have a risk-reward model from the partner and better relationship management. The top reasons for outsourcing is to reduce product development costs and time-to-market, and cut research and development costs.

    No doubt, the day is coming when Indian firms more frequently will own pieces of business within US companies (that risk-reward model).

    A survey done by attendees divulges mixed results around satisfaction with outsourcing of R&D. You can get the stats in the story.