State and the software: public policies in the shaping of the Indian software sector

Sarma, Mahesh; Krishna, V.V.

doi:10.1080/02642060802389498

Cited by 22 publications

(18 citation statements)

References 18 publications

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“…The emergence of the domestic market has aided firms in carving a niche for themselves in the global software market, by not only delivering global solutions but also focussing on solutions for the emerging markets (NASSCOM, 2010;Sarma & Krishna, 2010). We address the domestic demand dynamics on three fronts: industry structure; size and pattern of growth; and composition.…”

Section: Demand Conditionsmentioning

confidence: 99%

“…The government has played a key role in the evolution of the IT-ITeS sector in India (Parthsarathi & Joseph, 2004;Sarma & Krishna, 2010).…”

Section: Governmentmentioning

confidence: 99%

“…In mid-1991, the Indian economy was hit by a severe balance of payments (BOP) crisis and to mitigate the crisis, radical reforms were initiated that included abolition of industrial licensing, removal of entry barriers, exemption of corporate tax, opening up communication facilities, trade liberalization, devaluation of the rupee, and reduction in import duty on computers. These initiatives attracted multinationals 23 who set up their offshore development centres (ODCs) in India (Parthasarathy, 2010;Sarma & Krishna, 2010). The conducive environment coupled with large scale outsourcing to resolve the Y2K problem or the "Millennium Bug" ensured peaking of demand for software and services (Athreye, 2005).…”

Section: Governmentmentioning

confidence: 99%

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

Bhattacharjee

Chakrabarti

2015

IIMB Management Review

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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.

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Section: Demand Conditionsmentioning

confidence: 99%

“…The government has played a key role in the evolution of the IT-ITeS sector in India (Parthsarathi & Joseph, 2004;Sarma & Krishna, 2010).…”

Section: Governmentmentioning

confidence: 99%

Section: Governmentmentioning

confidence: 99%

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

Bhattacharjee

Chakrabarti

2015

IIMB Management Review

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“…The launch of the STP scheme in 1991 was beneficial to the industry as it provided single window clearance for a diverse set of activities (Arora & Bagde, 2010;Sarma & Krishna, 2010). However, there is no provision in the STP scheme to distinguish between big and small players and grant benefits in accordance with their size 20 or to distinguish between a software development unit and a call centre for example, as long as the concerned unit fulfils the minimum export-obligation.…”

Section: Concluding Observationsmentioning

confidence: 99%

Efficiency dynamics and sustainability of the Indian IT-ITeS industry: An empirical investigation using DEA

Bhattacharjee

2012

IIMB Management Review

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Efficiency considerations of the Indian IT-ITeS industry have come to the forefront especially with slowdown in the US and other major industrialised economies. Using the DEA technique, this paper argues that the key to sustainability rests on the operational efficiency of the players. Primary data for this study has been collected from STP Kolkata for a period of 15 years. The results reveal that (technical) efficiency varies across industry segments and increases with greater global orientation of the unit. The study prescribes segment-specific policies for sustainability of the industry instead of a uniform policy that has been the usual practice. ª 2012 Indian Institute of Management Bangalore. Production and hosting by Elsevier Ltd. All rights reserved.The Indian IT-ITeS industry has been successful in positioning itself as one of the most favoured outsourcing destinations, especially since the beginning of the 21st century. However, in recent times, issues concerning sustainability of the industry have come to the forefront. The outbreak of the sub-prime crisis that has engulfed major industrialised nations, notably the US (India's major trading partner) has resulted in lower offshore outsourcing. This is coupled with rising wage inflation that is eroding cost arbitrage; stiff competition from various low-cost destinations like Ireland, China, Philippines, and Vietnam that is eating into India's share in the offshore outsourcing pie; lack of product innovation leading to specialisation in services (and not products) and thereby lower earnings; and exchange rate vulnerabilities resulting in uncertain export realisations.In view of these developments, efficiency considerations have assumed prominence, since sustainability of this industry rests on the operational efficiency of its players. As a result, identification of possible determinants of efficiency is of prime importance, both for industry participants and policymakers. However, this important aspect of efficiency considerations in the context of the Indian ITITeS industry has remained unexamined, primarily due to the paucity of granular data.In this study, an attempt has been made to measure efficiency and thereby identify the possible determinants of efficiency, by incorporating Data Envelopment Analysis * Corresponding author. Mobile: þ91 9482549941. a v a i l a b l e a t w w w . s c i e n c e d i r e c t . c o m j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m / l o c a t e / i i m b Production and hosting by Elsevier IIMB Management Review (2012) 24, 203e214 0970-3896 ª

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“…Whereas, the public limited companies had greater proportion of sales in the corporate-oriented and less developed software and IT industry regions of East Asia, Latin America and the Middle East, compared to the private limited companies and unincorporated firms. Again, public limited firms had greater proportion of sales than the private limited firms in Europe Sharma and Krishna (2010). examined the role of policies initiated by the government of India and the respective governments, and sector specific initiatives such as the Software Policy 1986, the Special Task Force (STP) Act 1990, Computer Policy 1993, Telecom Policy, and IT Act 2001, on promoting the software services sector in India during 1955-2006.…”

mentioning

confidence: 99%

Trends and determinants of IT-BPM exports in India

Malik

Velan

2016

JSTPM

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Purpose The purpose of this paper is to present an overview of trends of Indian information technology and business processing management (IT-BPM) sector and to analyse the determinants of IT-BPM sector during the period 1991-2014. Design/methodology/approach The study is based on annual data collected from National Association of Software and Service Companies and Department of Electronic and Information Technology for the period 1991 to 2014. The methodology adopted for studying the objectives are simple averages, percentages, ratios, growth rates, graphs prepared on the basis of data from the IT-BPM sector and regression analysis. Trends and patterns in key variables, such as total revenue, domestic revenue, export revenue, employment and exports of the IT-BPM sector have been examined. Factors influencing IT-BPM export growth have been analysed using ordinary least square multiple regression model, with growth rates of gross domestic product (GDP), labour productivity, exchange rate and previous year’s export, as the explanatory variables. Findings The export revenue from IT-BPM sector increased continuously over the years, at an average growth rate of 36.60 per cent during the period 1991 to 2014. Similarly, domestic revenue of IT-BPM sector also increased, but at a lower growth rate. This is because domestic market in India is captured by multinational giants against Indian firms, which do not possess full comparative advantage in the case of IT-BPM sector. Indian firms are producing low skill activities required for production, mainly concentrated only in the export sector. Direct employment, excluding hardware from IT-BPM sector, has grown at an average rate of 18.08 per cent over the study period. The determinants of IT-BPM exports indicated previous year’s export demand to be significantly contributing the highest to export growth rate. This was followed by GDP growth rate, implying that overall growth of the economy leads to significant increase in export growth. Increased labour productivity followed next in significantly encouraging export growth. Research limitations/implications Generalization of the results may not be possible, as Indian conditions and policies vary. Practical implications The paper has implications for the expansion of domestic market, diversification of trade and products, innovations for increasing competitiveness and sustainability in the global market in the wake of stiff competitions from new competitors. Originality/value This paper focuses on originality in analysis of determinants of export growth.

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State and the software: public policies in the shaping of the Indian software sector

Cited by 22 publications

References 18 publications

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

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

Efficiency dynamics and sustainability of the Indian IT-ITeS industry: An empirical investigation using DEA

Trends and determinants of IT-BPM exports in India

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