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