Small software firms in India: A descriptive analysis

Despite extensive investigation of the Indian software industry, knowledge about small software firms is inadequate. This knowledge is important as many developing countries are contemplating the software industry as a means of national growth along the lines that India has taken. This paper provides a descriptive analysis of small software firms in India. It shows that small software firms that are located in software clusters; quality certified; low product oriented; and slightly larger tend to be more productive than others. Small software firms are defined as firms that have fewer software employees than the national median size. The paper used firm level data available in the Indian IT Software and Services Directory 2003, whose members contribute 95% of the industry revenue.