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The purpose of this paper is to investigate both long-run and short-run dynamics among the software and services export, investment in information technology (IT) and GDP in India and to investigate the direction of the relationship among the given three macro-economic variables.

The time series data have been taken to investigate the long-run relationship exists among the variables. Annual data were collected from the NASSCOM Annual Reports, Planning Commission of India and Reserve Bank of India during the period 1980–2016. Cointegration and vector error correction model have been used for analyzing the causal relationship among investment in IT, software exports and GDP in India.

Cointegration results confirm that software and services export, investment in IT and GDP are cointegrated, implying that there exists the long-run equilibrium relationship among the given three macro-economic variables. Similarly, vector error correction mechanism Granger causality results hold that there is uni-directional long-run causality running from software and services export and investment in IT to GDP, implying that software and services export is an important determinant of economic growth in India.

The limitations of the paper are generalization of the results and proxy variable for IT investments.

The paper has implications for the expansion of market concentration, diversification of software and service exports, and investments in R&D for increasing competitiveness of the industry in the global market.

This paper focuses on originality in the analysis of the relationship among the given variables software exports, investment in the IT sector and GDP in India. All the work has been done in original by the authors and the work used have been acknowledged properly.

The aims of this paper are twofold. First, the trends and patterns in key variables of performance of sample software companies during the study period are overviewed. Second, the determinants of information technology (IT) export across the sample companies during the period of economic slowdown have been analyzed.

Secondary data have been used in the study. Regression analysis is concerned with the study of the dependence of one variable, the dependent variable, on one or more other variables, the explanatory variables, with a view to estimating and/or predicting the mean or average value of the former in terms of the known or fixed values of the latter. The data collected through survey were scrutinized, and statistical software were used for analysis. The variables documented in the study include the exports, capacity utilization, profits, exchange rate and dummy for recession, dummy for countries of export.

The Indian IT sector was set for smaller growth due to global economic slowdown. Large IT service players were able to some extent cope with tighter client spends, but it was smaller IT companies which were facing the severe heat. Production of sample companies decreased at an average of 34 per cent in 2008. The profits of the sample companies have decreased by 34.34 and 78.67 per cent, respectively, during 2008. In case of determinants of software exports, it is observed that capacity utilization is positively related to exports. The estimated mean of exports increases by about 1.370.

This paper focuses on originality in the sphere of scientific work. Secondary data have been used in the study. The data were collected from the Annual Reports of four randomly selected software companies. Both face-to-face interview and on-line survey based on a structured questionnaire to the sample companies were used to collect the data. All the work has been done in original by the authors and the work used has been acknowledged properly.

The purpose of this paper is to present an overview of trends of Indian information technology and business processing management (IT-BPM) sector and to analyse the determinants of IT-BPM sector during the period 1991-2014.

The study is based on annual data collected from National Association of Software and Service Companies and Department of Electronic and Information Technology for the period 1991 to 2014. The methodology adopted for studying the objectives are simple averages, percentages, ratios, growth rates, graphs prepared on the basis of data from the IT-BPM sector and regression analysis. Trends and patterns in key variables, such as total revenue, domestic revenue, export revenue, employment and exports of the IT-BPM sector have been examined. Factors influencing IT-BPM export growth have been analysed using ordinary least square multiple regression model, with growth rates of gross domestic product (GDP), labour productivity, exchange rate and previous year’s export, as the explanatory variables.

The export revenue from IT-BPM sector increased continuously over the years, at an average growth rate of 36.60 per cent during the period 1991 to 2014. Similarly, domestic revenue of IT-BPM sector also increased, but at a lower growth rate. This is because domestic market in India is captured by multinational giants against Indian firms, which do not possess full comparative advantage in the case of IT-BPM sector. Indian firms are producing low skill activities required for production, mainly concentrated only in the export sector. Direct employment, excluding hardware from IT-BPM sector, has grown at an average rate of 18.08 per cent over the study period. The determinants of IT-BPM exports indicated previous year’s export demand to be significantly contributing the highest to export growth rate. This was followed by GDP growth rate, implying that overall growth of the economy leads to significant increase in export growth. Increased labour productivity followed next in significantly encouraging export growth.

Generalization of the results may not be possible, as Indian conditions and policies vary.

The paper has implications for the expansion of domestic market, diversification of trade and products, innovations for increasing competitiveness and sustainability in the global market in the wake of stiff competitions from new competitors.

This paper focuses on originality in analysis of determinants of export growth.

The purpose of this study is to explore the human capital (HC) value creation practices of knowledge‐based software and service exporter industry in India.

The study used HC disclosure attributes as a tool to the contents of the annual reports for the year 2003‐2004, to evaluate the type and amount of HC disclosed by the software firms. The study also conducted semi‐structured interviews with the heads of human resources (HR) of 14 software firms to obtain a greater understanding of the similarities between reporting and managed HC practices.

The study identified most reported and least reported attributes of HC using content analysis and explained their reporting of value creation using interviews and resource‐based view. The findings suggest that the HC reporting practices were consistent with interview findings. The frequency of HC attributes reported followed the extent of the management's perception of HC value creation to the firm.

The limitations of the study are: first, it is a cross‐sectional study; second, the findings may be applicable exclusively to the software and service industry in India and cannot be generalised to other industries in India or software industry in other countries; third, the assertions by the HR heads are assumed to faithfully reflect the firm's HC practices; fourth, the study assumes that annual reports are the primary documents available to public (stakeholders) requiring information on the firms.

This study provides an insight into the HC reporting practices of the nascent software and service exporter industry in India that is experiencing an economic boom that is positively influenced by the information technology software industry. This study throws light on the utilization of HC for value creation by the top software firms. This may help countries having tie‐up with Indian firms to understand the value creation process of these firms to sustain growth. The study would enable other software firms to understand HC reporting practices of the industry, and could use a framework that is similar to the framework used in this study.

The purpose of this paper is to discuss the trends in relative efficiency of software companies in India during 1999-2008 by applying input-oriented data envelopment analysis (DEA) model. Based upon the PROWESS Database of Centre for Monitoring Indian Economy (CMIE), the efficiencies were estimated for the Indian, multinational and group companies. Also, relationship between efficiency and size is examined.

The study applied DEA to measure relative efficiencies of software companies and two different DEA models, CCR and BCC, were applied to evaluate the relative efficiency of the sample software companies in India. Comparisons of efficiency scores based on ownership were carried out by applying ANOVA and t-statistics.

The mean overall technical efficiency (OTE) of the software industry in India during 1999-2008 was low at 0.477. The mean pure technical efficiency for the industry for the study period was found to be 0.654 suggesting that software firms, on an average, were wasting 35 per cent of their inputs. It was observed that the Indian-owned companies have relatively high OTE score as compared to foreign owned and group owned companies. The mean OTE score of PI companies was found to be greater than the other two categories. In terms of, size it is observed that medium sized companies performance better.

Software companies can use DEA to examine their performance against the best performers in the industry. Software industry in India, which is doted by large number of small firms in the lower part of the size pyramid, needs to increase their size to improve their efficiency.

Research on measurement of service sector export oriented industry efficiency is limited. This paper is one of the few published studies examined service sector performance. This paper fills the gap in the literature by applying DEA in software industry in India and compares performance in terms of ownership and size.

The information technology (IT) sector in India is the leading exporter from the service sector domain and also is a significant contributor to the overall export kitty of India. The IT sector’s contribution in total Indian exports (merchandise plus services) increased from less than 4 percent in FY1998-1999 to about 25 percent in FY2011-2012 as per IT industry nodal body National Association of Software and Services Companies and the central bank of the country, the Reserve Bank of India (RBI). As this industry earns most of its revenue in foreign currencies it is exposed to the foreign exchange risks. The purpose of this paper is to validate the macro-economic theory that depreciation in domestic currency boosts export as it makes domestic good and services cheaper and appreciation in domestic currency deters export as it makes domestic good and services costlier. The authors are validating this theory for Indian rupee and keeping software services export in the focus.

In this study the authors have done the multiple regression analysis on the obtained time-series data. The research was totally based on the secondary data from Quarter1 (April-June) of FY 2000-2001 to Quarter4 (January-March) of FY 2011-2012. It comprises of data for 48 consecutive quarters. The authors have taken the growth rate, so the final data set consist of data of 47 quarters. The main source of data are published data by RBI. Data have been collected for export of software services, merchandise export, real effective exchange rate, US-dollar-Indian rupee exchange rate, gross domestic product of India and selected countries.

Data analysis leads the authors to the following findings: real effective exchange rate has no significant impact on software services export; US-dollar-Indian rupee exchange rate has no significant impact on software services export; external gross domestic product growth has no significant impact on software services export; and gross domestic product growth of India has no significant impact on software services export. The results obtained from multiple regression analysis are also supported by the results obtained from Granger Causality test. It does not identify any single factor as a major cause of software export. Results shows that the external GDP is having the statistically significant impact on the software export but the low value of R2 denotes that the impact is very low.

There are no published studies available which has attempted similar kind of an approach to study using aggregated export data and other macro-economic variables like real effective exchange rate (REER) and GDP growth rate. All previous literatures used REER to measure the impact of the exchange rate on export.

The purpose of this study is to estimate revealed comparative advantage and normalized revealed comparative advantage (NRCA) indices of India’s computer and information services (CIS) export competitiveness with regard to information technology (IT) competing developing nations, such as China, Philippines, Malaysia and Brazil.

Using annual data of total exports for CIS, transportation (TNS), travel (TVL) and insurance (INS) services under service categories of the balance of payment, the present study estimates the pattern of comparative advantage (CA) in India’s CIS exports with respect to IT competing developing nations such as China, Philippines, Malaysia and Brazil from 2000 to 2018. The choice of the study period is determined by the availability of consistent data on IT service exports of these nations. The study also estimates the export position of CIS export in comparison to India’s traditionally strong commercial services export of TNS, TVL and INS during the study period.

Both the indices showed that India had a strong CA in CIS compared to the selected nations, indicating India’s relative export performance to be stronger than that of China, Malaysia, Philippines and Brazil. The cross-service index showed that India’s relative specialization level in CIS with respect to the world’s average specialization level was stronger than its relative specialization level in TNS, TVL and INS services. Furthermore, The NRCA cross-nation index showed that India’s NRCA index score has been declining since 2010 with respect to these nations, which implied a decline in the competitiveness of CIS. On the other hand, NRCA has increased in the case of Philippines, Malaysia and Brazil for most of the period post-2010.

IT is a dynamic area of economic activity, and when the pace of change is so rapid, the relevance of individual factors can change over time. The study period is also limited to the available data.

The paper has implications for attaining sustainability in IT export growth. It is suggested that policies are directed at enhancing the overall performance of IT sector.

The novelty of the present study lies in the estimation of India’s competitiveness in IT exports in relation to the group of reference countries. With its policy recommendations, this research is helping to shape the sustainability of the IT sector.

The IT industry, particularly IT enabled services (ITES), in India has shown remarkable growth over the past decade and continues to show resilience even in the face of a global downturn in the sector. While India has not been able to match China in manufacturing prowess, it may have found its competitive advantage in the area of knowledge‐based services to which its factor endowments are uniquely suited. Yet, the tremendous potential and promise of this sector in spurring economic growth and national competitiveness may not be realized, if the numerous obstacles to the sector’s growth are not removed. This paper traces the evolution of the IT industry in India, its positives and negatives and its potential to contribute to India’s global competitiveness. Structural barriers in the national environment to the growth of this industry are identified and discussed. Conclusions and policy implications are presented.

The aims of the paper are to investigate IT software and service export function for India. First, cointegration tests have been used to investigate the long-run equilibrium relationship of the given variables. Second, long-run coefficients and associated error correction mechanism are estimated.

Annual time series data on IT software and service exports, human capital, exchange rate, investment in IT, external demand and openness index have been used for the present study during the period 1980–2017. The data are collected from the National Association of Software and Service Companies (NASSCOM), Planning Commission of India, University Grants Commission (UGC) of India, real effective exchange rate (REER) database and World Bank development indicators. Auto regressive distributed lag (ARDL) model is used to analyze both short-run and long-run dynamic behaviour of economic variables with appropriate asymptotic inferences.

Results of the analysis show the stable long-run equilibrium relationship among the given variables. It is found that external demand, exchange rate, human capital and openness index have a substantial long-run impact on the IT software and service exports. We also found that the coefficient of error correction term is negative and significant at 1% of the level of significance, which confirms the existence of stable long-run relationship which means adjustment will take place when there is a short-run deviation to its long-run equilibrium after a shock.

There may be other determinants of software and service exports apart from those considered by the present study. Due to the non-availability of data, the study considers only important determinants that determine the software and service exports in India. The IT exports are an emerging and dynamic field of economic activity and the rate of change is so rapid that the relevance of individual factors may change over time. The study period is also limited to available data.

The paper has implications for achieving sustainability in IT software and service exports growth. It is recommended that policies directed at improving the performance of IT software and service exports should largely consider the long-run behaviour of these variables.

This paper focuses on originality in the analysis of the relationship among the given variables including IT software and service exports, human capital, exchange rate, investment in IT, external demand and openness index in India. All the work has been done in original by the authors, and the work used has been acknowledged properly.

The case traces the genesis of NASSCOM and presents a decision situation faced by the new president who has to formulate a road map in the light of changed circumstances. NASSCOM has been an exemplary trade association. However, it faces challenges that can jeopardize the future if the industry. While the challenges do not have short term effect on the growing Indian IT-BPO industry, as the active industry ally NASSCOM's new leader has to ensure long term success of IT-BPO industry. The case can be best used to understand the IT industry dynamics through the eyes of an exemplary trade body and also understand how a trade association in emerging economies can play an important role to fill institutional voids.