The IT research and development (R&D) offshoring market in India is set to achieve a 23 per cent compound annual growth rate, reaching $21.4bn by 2012, according to a study by consulting firm Zinnov.

Zinnov CEO Pari Natarajan said, despite this growth in the R&D offshoring market in India there is a dearth of required talent pool, it was reported in the Offshoring Times.

Salaries constitute around 70-75 per cent of an R&D company operations and this was also impacting their productivity, said Natarajan.