A comparative assessment of the information technology services sector in India and China

The purpose of this paper is to assess the nature of competition in the information technology (IT) services sector between India and China. Using primary and secondary data sources, we compare and contrast the strengths and weaknesses of the IT services sector in the two countries along the main dimensions of Porter&rsquo;s competitive advantage model. The principal findings indicate that the IT services sectors in the two countries are distinctively different, have developed along different paths and are highly complementary to each other. China has a well established hardware sector and its IT services sector focuses mostly on servicing its domestic market. India&rsquo;s IT services sector is predominantly export orientated with focus on the US and Western European markets. Contrary to popular beliefs, given the complementary characteristics of the IT services sectors in India and China, it is unlikely for the two countries to compete against each other in the near future and greater strategic co-operation between IT service providers in the two countries is a more likely outcome.<br /

Using involvement to enhance employee engagement in IT firms: Examining leadership initiatives in a key developing national context

Many organisational leaders increasingly use employee involvement to serve their interests, spurred by the unitarist rationale of leader‐member exchange (LMX). Existing research into employee involvement and participation (EIP) management has mainly focused on manufacturing firms in advanced economies and has not kept pace with developments in settings where practice is primarily governed by organisational leaders plus greater use is made of informal and technologically assisted EIP. Consequently, this paper investigates the management of EIP in IT firms at the forefront of these developments in India. The findings reveal how an array of informal initiatives, including social media, are being used to permeate traditional LMX and EIP boundaries to reinforce unitarist leadership goals. Limitations to some of these initiatives are elucidated, as they are unevenly used and contested by employees. Thus, the paper contributes to critiques of LMX as an ancillary framework for EIP

A Comparison of the Industrialization Paths for Asian Services Outsourcing Industries, and Implications for Poverty Alleviation

This paper examines three software and/or information technology enabled services (ITES) industries - two in the early stages of development (in the People's Republic of China [PRC] and the Philippines) and one mature one (in India). Being latecomers to offshoring work, the PRC and the Philippines have developed this industry in cooperation with multinational enterprises (MNEs). PRC firms have worked with and upgraded within MNEs' value chains within the PRC market, while the Philippines has relied on MNEs to come in and set up facilities, with domestic firms setting up facilities where lower (knowledge) barriers to entry prevail. The paper also explores the ITES industries' implications for economic growth and poverty reduction. ITES industries can contribute to overall economic growth and exports, but due to their small size, will generally tend to have more observable impacts on the cities in which they are located. From the limited case data available, it appears that the ITES industries impact on overall employment and other economic sectors to varying degrees, relative to other sectors. As these industries do not help the more impoverished or less educated, they cannot be said to be a solution for the less employable or impoverished, let alone to the problem of rural poverty

Information Technology and Its Role in India's Economic Development: A Review

Information technology (IT) is an example of a general purpose technology that has the potential to play an important role in economic growth, as well as other dimensions of economic and social development. This paper reviews several interrelated aspects of the role of information technology in the evolution of India's economy. It considers the unexpected success of India's software export sector and the spillovers of this success into various IT enabled services, attempts to make IT and its benefits available to India's rural masses, e-commerce for the country's growing middle class, the use and impacts of IT in India's manufacturing sector, and various forms of e-governance, including internal systems as well as citizen interfaces. The paper concludes with an overall assessment of these different facets of IT in the context of the Indian economy