Business Case Studies, Innovation and New Product Development Case Study, Outsourcing Innovation,opportunities and Challenges

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Innovation and New Product Development Case Study

Case Title:

Outsourcing Innovation: opportunities and Challenges

Publication Year : 2005

Authors: Blessy keerthi & Srinath Manda

Industry: Information Technology and IT Enabled Services


Case Code: IPD0024

Teaching Note: Not Available

Structured Assignment: Not Available

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For decades, outsourcing has evolved as an effective cost-saving strategy for companies and as a vital part of the global economy. Over the years, outsourcing has spawned from manufacturing to information technology and human resource management. In the early 21st century, outsourcing innovation, a new trend of outsourcing has emerged, which is gradually manifesting itself in diverse fields like electronics and mobile devices, investment research and pharmaceuticals. Research and development, which was once considered to be the inherent asset of a company is increasingly being outsourced as an attempt to reduce costs and improve competency. Despite its widespread advantages, outsourcing innovation has its share of challenges threatening companies with loss of their edge over innovation that could cause the conglomerates to shrink.

Pedagogical Objectives:

  • To discuss the importance of outsourcing and the dilemmas of companies regarding research and development
  • To discuss the prospects and challenges of outsourcing innovation.

Keywords : Outsourcing innovation, Research and development, Original design manufacturers (ODM),Government and Business Environment Case Study, Intellectual property, Independent design houses, Asian contract manufacturers, Cost saving strategy, Next step of outsourcing, A new paradigm and trend, Strategic and core activities, Global market challenges, Strategic drivers, Core competency, Faster time to market cycle, Resource flexibility reduced risk


  • Introduction
  • Outsourcing – a successful cost-saving strategy
  • Challenges to outsourcing innovation
  • The future

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