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Technology Sector Transforms Into a Giant R&d Machine

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When the world thinks of the Indian technology sector, it imagines a nation of call center workers and low level computer programmers administering databases and updating Web sites. Few observers, even in India, realize that the Indian technology sector has rapidly transformed into a giant R&D machine.

A host of brand name global multinationals have set up their own R&D operations in India. Intel designed its six core Xeon processor exclusively in India. IBM has over 100,000 employees in India performing significant roles in most of its software development projects. Cisco is developing cutting edge networking in Bangalore.

In a parallel development , many of the original outsourcing names have climbed the value chain. Semiconductor design, aerospace, and medical devices are all segments where large Indian outsourcers provide core R&D work for multinationals, work that was previously considered sacrosanct and never performed by entities outside the corporate veil.

From The Economic Times
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