Innovation returns from offshored IT R&D: a response article

Abstract

Purpose

This paper aims to serve as a response to the article “Innovation returns from offshored IT R&D”.

Design/methodology/approach

The paper highlights two aspects relating to captive centres and R&D offshoring: what R&D is offshored, and understanding foreign direct investment decisions in the context of captives.

Findings

Many captive centres have gone through a complex evolutionary path during which they have evolved from a cost centre to become a profit centre. WNS and Genpact are just two examples of such behaviour. Such an approach, and in many cases a reality, should change our approach as to how we assess the returns on offshoring investment by simply taking into account the strategic intent behind such an investment.

Originality/value

This article serves as a response to the research paper “Innovation returns from offshored IT R&D” by Datta and Bhattacharyya in this issue.

Citation

Oshri, I. (2012), "Innovation returns from offshored IT R&D: a response article", Strategic Outsourcing: An International Journal, Vol. 5 No. 1, pp. 36-38. https://doi.org/10.1108/17538291211221942