Major telecoms operators are considering whether they need large research and development centres. Some think R&D can be outsourced, just like a lot of things.Figures from 2004 financial reports show telecoms companies spend an average 1.9% of sales on R&D (see chart over page). That is the third lowest R&D-to-sales ratio - the percentage of revenue a company spends on R&D - of 11 industry sectors (software is highest at 12.7%, but the global average is 4.2%).