The Indian Software Industry

Abstract

What accounts for the success of Indian software and what have been the main forces that have shaped the industry's evolution? The chapter identifies four stages in the growth of the industry and draws attention to the different constraints and advantages in each stage of evolution. An unfettered and increasing world demand for software services permitted new entry and the growth of competition. Incumbent firms developed process capabilities in response to growing competition and factor market constraints. The chapter highlights the role of competition in the factor and product markets, as well as entrepreneurial experimentation with business models in explaining the evolution of the software industry.

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