This post was first published on November 03, 2014.
An article published in The Hindu on October 24, 2014, talks about the silent in-sourcing movement in Multi-National Companies. Organisations such as General Motors, focussing on in-sourcing IT operations during the last three years, and Astra Zeneca, setting up a captive unit in Chennai to move a large portion of global IT operations, have been cited in the news report as examples to highlight the growing in-sourcing phenomenon. One of the reasons cited in the article for such a trend is to safeguard high value Intellectual Property of the in-sourcing companies. Taking the statement at face value and assuming that there is IP at stake in out-sourcing the same, could there be anything with respect to IP, that might be encouraging this trend?
Though the decreasing trust of foreign companies in the Indian IP system might be a reason, on the face of it, it is remote and extrapolated. Besides, the level of confidence in a country’s IP system is a subjective determination, largely influenced by a company’s, or a sector’s, business interests. So, I am consciously staying away from taking this path.