Abstract: Since 2000, India’s outsourcing industry is moving from a low technology service supplier to a high technology R&D Service supplier. Which factor results in the success for the upgrading of India’s outsourcing industry becomes an important issue we need to study. Bangalore is the birthplace of Indian software exports, and also becomes more and more professional in R&D Service. Because of that, this paper takes Bangalore as a case study, trying to sum up the four key factors for the rising of India’s R&D service industry by reviewing the developing process of Bangalore’s R&D Service Industry based on the theory of global value chain as follows: the low-cost supply of high quality personnel, the changes of global R&D strategy of multinationals, the improvement of local research and management capacity and the full use of overseas personal network.