CERRITOS, Calif. — More than two-thirds of U.S. companies expect to deploy some R&D personnel in India this year, whether directly or via outsourced vendor partners, according to a report by Amritt Ventures. China ranked next among emerging economies with over 40% of respondents reporting plans to deploy some form of R&D personnel there.
In this survey on R&D globalization, Amritt found that 33% of American companies, 33% plan to deploy only 11 to 100 R&D personnel in emerging economies. Also, a significant number, 16%, said that they may have over 1,000 people working in R&D in emerging economies. Half of the companies performing R&D in emerging economies do so to serve those local markets, while 42% said that financial pressures played a part. About a quarter of the respondents, 26%, had trouble finding enough talent in their home regions and 17% sought to accelerate time to market by using additional resources in emerging countries. Anecdotal evidence from the survey suggests that time-to-market is likely to become a more significant driver of R&D globalization in the near future.
Asked about their main worries as they globalize the R&D function, more than 50% of the companies cited the quality of work from emerging economies. About 24% referred to cross-cultural communications as their main worry.
The Amritt 2008 R&D Globalization study is based on responses from 204 online respondents from the U.S. and was conducted in April and May 2008. Amritt is a professional advisory service that helps western companies leverage global resources and global markets. For more information on the report, visit www.amritt.com.