Offshore outsourcing, which means the transfer of the responsibility for an operation to an offshore provider, has increased in popularity recently. R&D operations are of strategic importance, since they form part of a companys competitive core. Hence, these are also very important operations in generating the competitive advantage of the company. Therefore, outsourcing some of these operations is highly controversial, as the outsourcer may risk exposing too much, and hence lose its competitive edge. Nonetheless, it is necessary for companies to strive for maximizing efficiency of their R&D operations to be able to cope under the constantly increasing innovation pressures.