Operational and tactical challenges faced by Indian software firms

Abstract

The Indian software services industry has been spectacularly successful, growing at over 50% annually for several years. However, the nature of markets and technology is changing. Other changes include rising salaries in India, fast growing higher end markets, talent shortage worldwide, and need for fester implementation of projects. However, for Indian companies a key change could be the growth of market segments that are not so price sensitive, and price based competition from China, Mexico, Philippines and other countries. In this paper, we have described important unique challenges faced by Indian service companies. These include challenges arising from sustained high growth, operating as a low cost service provider, challenge of overseas development, managing multiple agencies in a single project, cultural challenges of operating in overseas markets, and entry barriers to higher end value added work.