Electronic Data Systems are aggressively expanding in India to benefit from the GDM. A competitive response leads to a bandwagon effect. When one major firm sets up an offshore subsidiary to generate a competitive advantage, others will follow quickly. Thus, US firms are currently hiring a staggering number of Indian software professionals. However, the movement of labor and work is not just unidirectional. While Indian IT executives often talk about moving up the value chain, their firms are

more »

... likely to capture large projects-more than $100 million-or mega contracts-more than $1 billion-without an extensive onshore presence. Cultural alignment and closer customer relationships are key to competing successfully in providing high-end consulting services. Further, the perennial uncertainty of obtaining US work visas creates project planning and management risks. Recognizing these difficulties, The Indian IT services industry faces dramatic changes, challenges, and constraints as it uses the global delivery model to transform itself into a knowledge leader competing with established global giants.