Authors: Sameer Kumar
Addresses: College of Business, University of St. Thomas, Mail # TMH 343, 1000 LaSalle Avenue, Minneapolis, MN 55403-2005, USA
Abstract: This study reviews global operations of leading Information Technology (IT) and software development companies from the USA and India. These companies over the years have become key IT players in software outsourcing in the world. As the industry evolves, India is endorsing Software Technology Parks throughout the country. Established software leaders in the USA benefit from cost savings and increased flexibility derived from such outsourcing partnerships enabling them to stay competitive in the global market. Low-cost technology destinations like India are benefiting from the increase in disposable income supporting expansion of the global economy. The analyses using Strengths, Weaknesses, Opportunities and Threats (SWOT), financial performance data and Porter|s five-forces indicate a common business strategy of Indian IT and software companies. They do not compete head on with the US counterparts and instead focus on acquiring niche outsourcing markets that are still open and growing rapidly due to worldwide slowdown in IT spending budgets.
Keywords: Infosys; Wipro; Satyam; Oracle; Microsoft; strategic software alliances; IT outsourcing; information technology; business performance management; software leaders; outsourcing partners; software development; United States; USA; India; technology parks; business strategy.
International Journal of Business Performance Management, 2007 Vol.9 No.1, pp.58 - 76
Published online: 01 Dec 2006 *Full-text access for editors Access for subscribers Purchase this article Comment on this article