Abstract
India has achieved remarkable success in the software industry. Software accounts 25% of the Indian export. The resources, including technical skills and cost competency have contributed to the competitive position of the Indian software industry. However, appreciation of the rupee against the US dollar squeezes margin of software firms. Various other factors such as attrition rate, wage inflation, competition, etc., also affects the performance of software sector. This article compares the Indian software market scenario with that of the Chinese market. It also underlines the emerging challenges for the Indian software industry and identifies various strategic options available.
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