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What You Should Really Know About Outsourcing Research and Development (Pros and Cons)

Every business leader knows that innovation and competitiveness are constant commitments to survive and stay ahead of the game. With this, Research and Development (R&D) has become an essential part of a company’s growth and development. Why? It pertains to the process of studying, developing, and testing new products, services, or systems to enhance the company’s existing products or create new ones. It’s all about playing the long game, so it’s not at all surprising to see companies investing a lot in it.

When it comes to R&D, you can save a lot of time when you outsource the work. But before that, we need to cover a few topics. Let’s take a look at the available roles, pros, and cons!

What are some Research and Development roles available?

It pays to understand the various roles an R&D team can take on depending on the company’s needs. Here are some of them below:

Product Development

Some companies have dedicated teams complete research, design, and develop new products and services that meet customers’ needs and expectations. This could be a strategic move, but sometimes, it’s also about improving a product or service that has been unsatisfactory to the consumers for quite some time. Either way, product development is usually the most externally evident type of role an R&D staff may take.

Process Improvement

Let’s talk about the internal stuff, shall we? R&D teams don’t just look for ways to make things better for the consumers. They also need to streamline and improve existing business processes to increase efficiency, and reduce costs. This way, companies would definitely enjoy the boost in profitability.

Technology Development

Complementing the process improvement is technology development. R&D teams work on developing new technologies and systems to enhance the company’s overall performance.

Benefits of Getting a Research and Development Team

If you are still hesitant about having a whole team in your company work on Research and Development, you better take a look at what you’re missing out on! There are plenty of benefits for businesses. Why don’t you take a look below?

Competitive Advantage

Companies that invest in R&D gain a competitive advantage by introducing new products, services, and technologies before their competitors. If you take into account the visionaries, these are the people who develop a product even before consumers realize they need or want it.

Revenue Growth

When a company launches new and improved products and services, they would enjoy increased revenue streams and improved profitability. Who wouldn’t want that?

Customer Satisfaction

It is highly important to keep your patrons happy to keep them coming back for more. This is exactly why a lot of SR&D teams focus on creating products and services that meet customer needs and preferences. They also work on how they can further improve the product so that it ultimately leads to higher customer satisfaction and loyalty.

Employee Retention

There is no doubt that the people belonging in R&D teams are passionate about innovation and creativity. Companies with active programs in this specific field often attract and retain top talents.

Pros and Cons of Outsourcing Research & Development

We’ve talked about how outsourcing is a good way for companies to have a quality R&D team without burning a hole in your pocket. However, the advantages and disadvantages should be considered before making any decisions. 


  • Access to specialized skills and knowledge
  • Reduced overhead costs
  • Increased flexibility and scalability
  • Improved speed of innovation
  • Access to a larger pool of talent
  • Improved focus on core competencies
  • Access to a global talent pool
  • Reduced risks associated with investments
  • Improved access to cutting-edge technologies
  • Improved agility and adaptability in response to market changes


  • Loss of control over the R&D process
  • Potential language and cultural barriers
  • Longer turnaround time 
  • Potential loss of intellectual property
  • Difficulty in maintaining consistent communication and collaboration
  • Lack of understanding of the company’s specific needs and objectives
  • Quality control issues
  • Dependence on third-party vendors
  • Difficulty in managing offshore teams and maintaining a cohesive company culture
  • Limited access to physical resources and facilities

Outsourcing R&D can be an excellent solution for businesses looking to benefit from the advantages of an R&D team without incurring the costs of building and maintaining an in-house team. 

Why exactly should you outsource to the Philippines? Let’s talk about that! 

The Philippines is an ideal location for Outsourcing R&D

Philippines is basically a huge talent pool full of highly skilled talent

It’s no wonder why a lot of companies – local and international alike – are vying for employees coming from the Philippines. The work traits of Filipinos can be summed up in three words – competent, reliable, and intelligent. Plus, when it comes to R&D, you can rest easy because there is a large number of graduates in science, technology, engineering, and mathematics (STEM) fields.

English Proficiency is above average 

The Philippines is one of the world’s largest English-speaking countries. This will surely help in making communication and collaboration with R&D teams seamless.

You get to enjoy a cost-effective option

The cost of living in the Philippines is lower than in many Western countries, resulting in lower labor costs for R&D outsourcing. However, if you are experiencing such outstanding work, you might not be able to stop yourself from shelling out a little bit more! 

The Philippines is a business-friendly environment

The Philippines has a pro-business environment, with numerous incentives for foreign investors, including tax breaks, simplified regulations, and streamlined procedures.

You don’t need to worry about infrastructure

Cross this item out of your worries already! The Philippines has a robust infrastructure, including reliable internet connectivity and modern office facilities, making it an ideal location for outsourcing R&D teams.

Outsourcing R&D to the Philippines can provide businesses with a competitive advantage, reduce costs, and improve profitability. With the highly skilled workforce, a pro-business environment, and a modern infrastructure, you’ll definitely say that it is, if not the most ideal location for outsourcing R&D. 

Are you ready to boost your company’s competitiveness in the market? Talk to us about outsourcing Research and Development to the Philippines! We’ll help you out. 

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