1. Porter’s well-known 1990 study on the competitive advantage of nations describes factors that
have promoted high rates of innovation in certain industries in certain countries. These are
summarized as the Porter Diamond framework showing how factor conditions, related and
supporting industries, demand conditions and the strategy, structure and rivalry of other local
firms can force continual improvements in productivity and new product development. How does
the development of Indian IT fit into this framework?
2. What are the threats and opportunities for Western software firms arising from this shift in the
competitive landscape? How are they strategically responding to these?
3. What are the costs and benefits of offshoring to India for a large multinational firm? When should
it not engage in offshoring?