Houston: The research and development outsourcing market for information technology in India to grow from $1.3 billion in 2003 to over $8 billion by 2010.

According to a study by Ireland-based leading market research resource, Research & Markets, India is now well on the road to becoming the world's favourite destination for outsourcing.

"But a low cost advantage does not spell sustainability. Moving away from call-centres and other low-end services, firms are now beginning to exploit the intellectual calibre that is available in India," the study said.

"Evidence of high-end outsourcing is evident from the large number established R&D outsourcing centres in India." This report looks at various aspects of R&D outsourcing industry in India, with special focus on the R&D outsourcing scenario in the IT, Telecom, Auto, Research and Pharmaceuticals sectors. Estimates for R&D outsourcing in India, with forecasts till 2007 for the IT, telecom and pharmaceutical sectors, are also provided.

The report examines the key drivers and inhibitors impacting the growth of R&D outsourcing, prospects for growth and key success factors. Success stories of some of the major companies like Texas Instruments, Microsoft, Cisco and GE, who have set up large R&D centres in India, are also provided.

The report is based on secondary data as well as extensive interviews with key people at the Indian R&D centres, to understand reasons for success/failure and other attributes of the successful companies.