The Uneven Profile of Indian Software Exports

Abstract

Indian software exports have shown very high growth rates for many years. Yet, behind this success lie a number of skews. These skews are discussed in this paper, which is based on fieldwork and secondary surveys conducted in India over the past ten years. In particular, software exports have been epitomised by the export of programmers who go to work for a client in the US: so-called ‘body shopping’. Software exports have also been dominated by large firms located in a few metropolitan areas, notably in Bangalore. The paper discusses each one of these skews; presents analysis that explains why they exist and persist; and, looking especially at growth in offshore working, why they may change. Conclusions are drawn about the benefits, costs and likely trajectory of the current uneven profile of Indian software exports.