A couple of years ago I proposed a field research examining the outsourcing of R&D. With a fellow lecturer, we took 25 students to India during which we visited many high tech companies. The report had a foreword from the Netherlands Minister for Economic Affairs. I reproduce some of his ideas contained in the foreword:
"When companies outsource, they stay competitive. ...I will pay close attention to the magnitude and economic effect in the Netherlands of international outsourcing." ..."We must exchange more knowledge with countries like India and profit from each other because it is all about economic growth. The potential is great. India is set to become a great power."
I believe he has been shown to be correct.
The title of the report for which I was the editorial consultant and Science and Technology Consultant had a revealing title:
"Outsourcing of Research and Development --Towards enhancing competitiveness through foreign brainpower". The students were given the task of writing the report.
Some the industries we studied included: aerospace, biology, computing and IT, defence, engineering, pharmaceuticals, etc. Please see the cover of the 317 page report. I did write and presented a conference paper with a couple of students.
A useful reference to get you started is:
Quelin, B., Duhamel, F. (2003) Bringing together Strategic Outsourcing and Corporate Strategy: Outsourcing Motives and Risks. European Management Journal. Vol 21 (5), 647-661.
Our study was co-sponsored by a number of Dutch companies who were interested in outsourcing of R. There was no funding from companies in India.
- Grossman, Gene; Helpman, Elhanan (2001) : Integration vs. Outsourcing in Industry Equilibrium, CESifo Working Paper, No. 460, Center for Economic Studies and Ifo Institute (CESifo), Munich.