R&D the next to be outsourced

The next wave of outsourcing will be research and development (R&D) functions, according to the latest Santa Clara University Business Index released Thursday.

The monthly business indicator tracks business conditions and jobs by polling executives and managers in a wide range of companies. While R&D hasn't been moving offshore at the rate of manufacturing and customer support, SCU finance professor Robert Henderschott told internetnews.com says a trend is developing.

"There are quite a few companies in our survey -- over one-fifth -- putting their toe in the water," he said.