The Indian Software Industry and its Evolving Service Capability

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 emphasizes 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 (out-sourced software) that was best suited to limited resource advantages of Indian software firms. Copyright 2005, Oxford University Press.