RESEARCHERS: Kenneth L. Kraemer, Jason Dedrick


This NSF funded research examines the outsourcing and offshoring of new product development activities in the computer hardware and software sectors. It breaks down product development into its different activities and looks at which activities (plan, build, run) are being kept in-house and which are being outsourced and/or offshored. It also examines the “push” and “pull” forces shaping these sourcing decisions and the impacts of sourcing on firm performance.

The research uses field interviews and a telephone survey of R&D executives (CTO, VP Engineering, CEO, VP Product Development) in 400 hardware and software firms to identify the level and patterns of outsourcing and offshoring among firms. The work is being done in cooperation with professional associations, including the American Electronics Association (AeA), Software and Information Industry Association (SIIA) and the Product Development Management Association (PDMA). The survey is currently in the field and we have received nearly 300 responses so far of which about one-half are offshoring some phase of new product development (e.g., concept, business plan, design, physical development, manufacturing, post-production support). A preliminary report describing the results will be produced by October, 2008. Further analysis will occur over the next several years, and reports will be issued periodically on the website.