Investigating India's competitive edge in the IT-ITeS sector

Abstract

The paper investigates the factors instrumental in imparting a competitive edge to the Indian IT-ITeS sector using Porter's diamond model. The paper ascertains the relative superiority of the model in explaining India's prominence in the IT-ITeS sector. The study carries out a "complex" application of the model that is "instrumental" in its attitude by identifying certain distinct factors under the realms of the diamond, the interplay of which catapulted India into the most favoured outsourcing destination. The study posits that the sector is likely to retain its technological prominence in the foreseeable future.

Productivity and Exports: An Industry-Level Analysis of the Service Sector in India

“…For instance, in the Indian context, the growth of the IT and software service firms projects the role of the entrepreneurs and the subsequent changes in those firms in contributing to their growth (Athreye, 2010; Ojha & Krishna, 2004; Parthasarathy & Aoyama, 2006). The small and emerging firms in the industry continuously strive to excel in niche services/verticals so as to circumvent the competition from the industry majors (Bhattacharjee & Chakraborti, 2015); thus, better skilled workers with more knowledge deliver new and innovative products/services.…”

Role of mergers and acquisitions on corporate performance: emerging perspectives from Indian IT sector

“…The significant inference from the findings reveals that financial impact of domestic deals in long run per se is much better than cross-border deals. Thus the superiority of domestic deals may have been resulted due to the global uncertainty caused by the subprime crisis in 2008-2009 and the resultant demand for products of client companies in developed countries shrank causing shrinkage in the demand of IT companies' products and revenue (Bhattacharjee & Chakrabarti, 2015). This has further caused relatively poor financial performance of subsidiaries located in these developed countries than their Indian counterparts.…”

“…So, companies, focussing within India, went for more deals for strategic asset seeking and efficiency seeking motives rather than market seeking motive (Soni, Kar, & Bhasin, 2019). Further, Investment for efficiency enhancement helped Indian IT companies to gain a competitive edge which is in sync with the argument of Bhattacharjee and Chakrabarti (2015). This strategy paid off with better performance for different financial variables after domestic deals in comparison to cross-border deals.…”

A qualitative study on industry 4.0 competitiveness in Turkey using Porter diamond model

“…Most scholars attempt to explain factor conditions with labor aspects and capital aspects such as investments of these technologies and their infrastructures, but availability of natural resources in a nation could also effectively forge an advantage of utilizing these factors (Heeks, 2006;Moon, Rugman & Verbeke 1998;Riasi 2015;Bakan & Doğan, 2012). Bhattacharjee and Chakrabarti (2015) opine more detailed enumeration of factor conditions; they also add cost arbitrage which means availability of cheaper and quality manpower and resources in a country compared to other nations. In addition, some other aspects that have an impact on labor production could be regarded as factor conditions.…”