Outsourcing Intensity of Indian R&D Centres

The trend line indicates that companies first set up an R&D center in a global location to build a relationship with the surrounding partner ecosystem. As the center scales, the total outsourcing begins to regress in proportion to the growth in headcount.

This indicates that companies start to bring more work in house as their capabilities grow. Exceptions to the rule are companies headquartered in India as shown by Tata Motors in the chart.

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