Global R&D Outsourcing Market Overview:
R&D outsourcing refers to the outsourcing of R&D activities to third-party service providers for designing, prototyping, testing, production, and sales. The survival in extremely competitive market environments has forced organizations to outsource their R&D operations to third-party service providers. R&D outsourcing allows organizations to develop innovative and cost-effective products in a short time and earn more profit. According to AMA, the Global R&D Outsourcing market is expected to see growth rate of 8.35%
- Cost-Effective Solution for Research and Development Activities
- Rise of R&D Outsourcing in the Pharmaceutical Industry
- Reduces Risk
- Evolution of Industrial IoT and M2M Communication
- Growing Adoption of Predictive Analysis Techniques
- Emergence of Artificial Intelligence
- Larger Capital Investment Required to Establish Management Facilities
- Characteristic Complexity and Uncertainty Involved
- Risk Associated with Hi-tech R&D and Conflict of Interest Issues
- Emergence of R&D Outsourcing In The Emerging Countries
- Virtual R&D
- Emergence of Industry 4.0 and Widespread Adoption of AI Across Industries
- Establishing an Effective Communication Between Service Providers and Clients
- Identification of Service Providers with Required Expertise
The global R&D outsourcing service market is moderately fragmented. The level of competition among the companies in the R&D outsourcing market is intense and the focus is towards developing new technologies and offering customized products to the customers. The companies are seeking ways to reduce cost, improve product quality and production efficiency. During the coming years, a number of companies will also follow the merger and acquisition and many more strategies to sustain in this competitive market.
Some of the key players profiled in the report are HCL Technologies (India), Infosys (India), TCS (India), Tech Mahindra (India), Wipro (India), Aricent, Inc. (United States), Aspire Systems, Inc. (India), Samsung Electronics (South Korea), Microsoft (United States), Intel (United States), Beyondsoft Corp. (China), Blue Star Infotech, Ltd. (India), GlobalLogic (United States), Cyient (India), Luxoft (Switzerland), Mindtree (India), QuEST Global Services (Singapore), KPIT Technologies Ltd (India) and Larsen & Toubro Ltd (India). Additionally, following companies can also be profiled that are part of our coverage like Sonata Software Ltd (India) and Symphony Teleca Corp (India). Analyst at AdvanceMarketAnalytics see India Players to retain maximum share of Global R&D Outsourcing market by 2024. Considering Market by Functions , the sub-segment i.e. Product Designing will boost the R&D Outsourcing market. Considering Market by End User, the sub-segment i.e. Automotive will boost the R&D Outsourcing market.
A recent study by the Center for European Economic Research shows that "The cost savings that come from outsourcing R&D can easily be overshadowed by the added complexity to manage the process throughout the organization. The report, which used survey data from a wide range of German companies, concluded that outsourcing more than 15 percent to 30 percent of a firmís innovation activities could make it difficult for management to maintain the effectiveness of the organization."
Data related to EXIM [Export- Import], production & consumption by country or regional level break-up can be provided based on client request**
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The top-down and bottom-up approaches are used to estimate and validate the size of the Global R&D Outsourcing market.
In order to reach an exhaustive list of functional and relevant players various industry classification standards are closely followed such as NAICS, ICB, SIC to penetrate deep in important geographies by players and a thorough validation test is conducted to reach most relevant players for survey in R&D Outsourcing market.
In order to make priority list sorting is done based on revenue generated based on latest reporting with the help of paid databases such as Factiva, Bloomberg etc.
Finally the questionnaire is set and specifically designed to address all the necessities for primary data collection after getting prior appointment by targeting key target audience that includes Government and Academic Institutes, R&D Departments and contract research organizations, Consulting Firms and Others.
This helps us to gather the data related to players revenue, operating cycle and expense, profit along with product or service growth etc.
Almost 70-80% of data is collected through primary medium and further validation is done through various secondary sources that includes Regulators, World Bank, Association, Company Website, SEC filings, OTC BB, USPTO, EPO, Annual reports, press releases etc.