Small Firms in the Indian Software Clusters: Building Global Competitiveness

Abstract

This chapter presents a case study of the Indian software industry, especially in Bangalore, the oldest and largest software cluster in India. It draws on extensive interviews with personnel in about forty software firms of different sizes in Bangalore, Delhi and NOIDA that is carried out during three rounds of fieldwork in India between 2001 and early 2005. The chapter discusses the sources and nature of competitiveness of firms clustered in knowledge-based industries, and the challenges that small firms face in building this competitiveness. It analyses the patterns of the geographical distribution of software firms and clusters in the Indian software industry. The chapter also analyses the strategies that domestic small firms in software clusters have adopted to build their competitiveness, focusing on the patterns of their capability development, and inter-firm linkages between small domestic firms and their affiliates and clients both within India and abroad.

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