The Indian Software Industry and its Evolving Service Capability

Abstract

This paper examines the growth of dynamic capabilities among firms in the Indian software industry by looking in some detail at the changing constraints, opportunities and competition facing incumbent firms. It emphasises the important role played by tight labour market conditions in inducing investment in process capability and the role of entrepreneurial experimentation in evolving a business model (outsourced software) that was best suited to limited resource advantages of Indian software firms.

Keywords: Indian software, capabilities and market structure, business models and organisational capbilities, firm capabilities and industrial development.

JEL Classification: L0, L1, L2, L8, J2, J3, O0