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.