R&D Outsourcing

In recent years, we have witnessed a trend that is growing ever more common, in which various companies decide to "extract" from their ranks specific R&D works, and deliver their development to external companies that specialize in that specific field.

Mostly, there are two reasons for outsourcing R&D works: first, when the required work is not within the field of expertise of the company in need of development, e.g. a bank that engages in an agreement with a computing company for the purpose of developing banking software to be used at its branches; and second, when the client company lacks the resources compatible with performing the work by itself (this usually occurs in young technological companies and start-ups).