Sources of Competitiveness of Offshore IT Service Providers in India: Towards a Conceptual Framework

Abstract

Rapid growth in the offshoring of information technology services by advanced industrialized countries to less developed countries in recent years has been accompanied by a voluminous amount of research on the subject. However, most research to date has tended to focus on the clients while research on offshore service providers (OSPs), particularly from developing countries, remains scant. This paper adds to the literature on offshoring of information technology services by investigating the sources of competitiveness of OSPs in India. Drawing from the experience of a selection of India's top 20 OSPs, the paper develops a conceptual model which posits that OSPs in India draw their competitiveness from having well-developed internal resources and capabilities such as human resource orientation, knowledge management and relational capital, together with clear growth strategies, while operating in an environment where the government plays a catalytic role in stimulating business growth.