Costs up at India's R&D centers

Kariyatil Krishnadas, EETimes
10/13/2011 11:01 AM EDT

BANGALORE, India — Operational costs are on the rise at global technology companies’ Indian R&D centers as the focus shifts from cost cutting to innovation and value creation, a recent study found.

Zinnov Management Consulting reported that R&D operational costs  are on course for a 9 percent year-on-year increase—13 percent in U.S. dollar terms—in 2011, following two years of stringent cost reductions. Operational costs next year are expected to rise between 8 and 12 percent, the consultancy projects.