India Inc. Going global: IT industry internationalization model

Abstract

During last two decades, Indian IT firms' efforts for sustaining a competitive position and profit growth in the rapidly expanding global marketplace has become evident. One of the major strategic planning undertaken by Indian IT firms is the expansion oftheir activities outside domestic market. Political, legal, financial, economic and cultural forces in the host countries influence these ventures. This paper attempts to develop a model to explain the differences in foreign market entry mode decisions between industries. Foundations of our model are developed on the basis of the relative degree of potential strength of the company, the risk responsiveness of internationalization, and effects of industry use of company strength potential know-how internally or externally. In addition, the analysis contains a detailed description of the findings on IT industry, and summarizes the model with combined results. Finally the conclusions are presented to summarize the work, the practical implementations and suggestions for further research.