An explorative study of established software leaders and their key outsourcing partners

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.