Despite rising costs, India will continue to be a popular site for offshore R&D, according to consulting firm Zinnov, which conducted interviews with 120 foreign R&D centers in India. The offshore R&D industry is worth $9.35 billion, is growing 23% annually and is forecasted to be $21.4 billion by 2012. Multinational corporations are fueling the growth. The number of foreign-owned R&D centers in India totals 594, with Bangalore as the primary location. These centers are increasingly developing products for sale internationally. Zinnov estimates that 10% of foreign-owned Indian R&D centers have “full ownership” of their product lines and that this percentage will increase to 30% by 2012.

Source: Business Week