Industrial Organization Case Study of the Indian Information Technology Industry
Date
2005
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Haverford College. Department of Economics
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Thesis
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Award
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eng
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Haverford users only
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Abstract
This is an industrial organization study of the Indian IT industry. It specifically examines the software and IT services sectors. There will be limited focus on the domestic IT industry and on the hardware sector. This is because the industry is export focused, and also because the hardware sector revenues are minor relative to the revenues from the “software and services” sector. The Indian IT industry is an attractive area of study for a few reasons: To begin with, it is an emerging industry. This offers excellent opportunities to study an industry as it matures. Secondly, the Indian IT industry is growing at a swift pace, estimated to be between 20-40% a year. Additionally, the IT industry growth has functioned as a catalyst for political and economic changes in India. Any study of an emerging industry must offer the following caveat: There is generally a paucity of accurate data. Therefore, as new information becomes available, our understanding of the industry may change. This is especially true of the Indian IT industry because government records, regulations, and laws have yet to catch up with its immense growth. Furthermore, most firms tightly guard sales figures, as proprietary information. As corporate governance becomes more transparent, and government records are organized, much more accurate information should be available in the future. Finally, this paper is written with the hope that it inspires others to take a closer look at an industry that this author feels is simply aweinspiring in its potential, and in its ability to bring humanity closer to one another.