دانلود رایگان مقاله بررسی مزیت رقابتی هند در بخش IT-ITES

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.

Concluding observations

The primary objective of our paper was to investigate the factors that have contributed to the success of the Indian IT-ITeS sector, using Porter’s diamond model. As Porter’s construct was originally based on a business strategy perspective (Heeks, 2006), the study has important implications for practising managers and policy makers so as to ensure that the industry retains its competitive edge. Managerial implications Investigating the factors instrumental in imparting a competitive edge has important takeaways for practising managers. First, we observed the existence of a fully functioning diamond as the industry traversed from an investment-driven to the innovation-driven phase. This was made possible on account of continuous innovation in the industry resulting in the gradual progression of the industry from being a service provider to a solution provider. Managers need to ensure continuous innovation so that this progression proceeds smoothly. Second, the “chance” factors highlighted how the industry weathered seemingly unfavourable events such as the Y2K problem, dotcom crash and recession in the US economy. It exhibited how the industry converted threats into opportunities. For an industry that is continuously evolving, this necessitates that managers be vigilant to leverage every opportunity, while being wise enough to mitigate the threats. Third, the strategies adopted by the players revealed that uniform strategy for all may not be beneficial since the industry remains highly heterogeneous. While the bigger players would do well to enhance their range of offerings so as to encompass the entire value-chain of IT, for smaller players or start-ups, the need is to focus on niche areas instead of being end-to-end service providers. Fourth, the domestic market has evolved to match the export market with increasing IT adoption; managers would do well to tap this market as well. In the process, they would be able to circumvent the export-market vulnerabilities. Lastly, since IT is essentially a people-centric industry, efforts should be made to motivate and retain the workforce. Policy implications The novelty of the model is such that it not only enables identification of the factors instrumental in imparting competitive advantage but also prescribes policies in accordance with the realms of the diamond so as to strengthen the various components that it encompasses. This would include upgrading education and training, reducing entry barriers to enhance competition, supporting locational clusters through investments in infrastructure, and enhancing size and sophistication of domestic demand (Heeks, 2006). Though all these prescriptions deserve due attention, upgradation of education and training needs to be undertaken with utmost priority so as to meet the everchanging industry demands.