There are many aspects of outsourcing innovation that companies and R&D leaders need to consider. After having looked at several reasons for outsourcing R&D projects, as well as a handful of risks of outsourcing, Newlogic now turns our attention to some of the issues outsourcing brings about that R&D need leaders.
How to Make Selections For Outsourcing R&D Projects
One of the things an R&D leader will be called upon to do is make selections on which projects to pursue. The R&D leader will have delegation over both in-house and outsourced projects, at least to some extent. The R&D director needs to be able to recognize in which areas the company does and doesn’t have competencies. The tasks the company performs well should remain in-house, while the tasks that the company does not do, cannot do, or isn’t as good as it could be, should be outsourced. Vivek Wadhwa of techcrunch.com says that innovation of core products should not be outsourced because the developers of these innovative technologies need to simultaneously interact with each other and their potential consumers, something made more difficult through an outsourcing of this process. Continue reading
R&D outsourcing is a business practice widely used by many companies across many industries across the world. A few days ago, we addressed seven reasons why a company might choose to outsource R&D. However, although outsourcing innovation can be hugely beneficial to all involved companies, the move to do so is not without its share of risks.
Outsourcing has become an important tool for most R&D leaders, although outsourcing is often viewed negatively, synonymous with a loss of jobs, R&D leadership and competitiveness in the industry. R&D outsourcing is an important resource utilized by leading R&D organizations to reduce costs, expand capabilities, leverage open innovation, and support broader industry reach. The move to outsource R&D can also be seen as a deliberate step by the company to increase its global market reach. The effects on research and development have been profound, affecting project implementation, organizational structure and strategic management.
There are a number of reasons for the shift from in-house R&D to outsourced research and development, not the least of which is an attempt by companies to cut costs of operation, which is what immediately springs to mind in regard to outsourcing. But there are other reasons a company may choose to outsource innovation. Continue reading