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R&D outsourcing to grow in India.

The R&D outsourcing market for information technology (IT) in India is forecast to grow from $1.3 billion in 2003 to more than $9 billion in 2010 (32% CAGR), according to a recent report by Frost & Sullivan, an international market research and consulting company headquartered in San Jose, Calif. Similarly, R&D outsourcing for telecom in India is anticipated to grow from $0.7 billion in 2003 to more than $4 billion in 2010 (29% CAGR).

IT growth opportunities, according to the report, are in computing architectures, encryption and network security, human computer interfaces, programming languages, and software engineering. In telecom, the growth opportunities are in new versions of Internet protocols like IPv6, video servers, and wireless sensors.

Limitations to this growth include restrictions on the import of components and research materials required by academics, low in-house expertise, loss of intellectual property, and the stability of research organizations.

Companies with large IT and telecom operations continue to take advantage of India's growing strength in these areas. Agilent Technologies, Palo Alto, Calif., for example, announced recently that it would grow its R&D workforce there from 900 in 2004 to more than 2,500 by 2006. Agilent expects to focus its Indian operations on wireless solutions, OSS and billing software for telecom service providers, and device drivers for electronic products.

>> Resources

Agilent Technologies, 650-752-5000,

Frost & Sullivan, 408-392-2000,

Trilogy Inc., 512-874-3100,

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Title Annotation:reasearch and development
Comment:R&D outsourcing to grow in India.(reasearch and development)
Publication:R & D
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 1, 2004
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