IntroductionForms of OutsourcingDrivers of OutsourcingTheory of Comparative AdvantageConcentration on Core CompetencyDevelopments in TechnologyExistence of Low-Cost, Skilled ManpowerChanges in Regulatory EnvironmentInfrastructural and Institutional DevelopmentFactors behind a Decision to OutsourceIndustry Focus Legal OutsourcingTechnical and Institutional SeparabilityStandardization and AutomationCost MinimizationMarket SizeSoftware Industry in IndiaInternational Business in Action Product Development in ChinaPublic Policies and the Development of India's Software ExportsDevelopments in the IT–BPO SectorGrowth Drivers of India's ITES–BPO SectorAbundant TalentSustained Cost CompetitivenessContinued Focus on QualityWorld-Class Information Security EnvironmentRapid Growth in Key Business InfrastructureEnabling Business Policy and Regulatory EnvironmentProblems and Pitfalls of the ITES–BPO IndustryAppreciation of the RupeePoor InfrastructureIncreasing Demand for Trained ManpowerEmployee Dissatisfaction and High Attrition RatesIntensifying CompetitionFuture ThreatsIT Value ChainRegion Focus Moving beyond the Back OfficeManagerial PerspectiveClosing Case Indian Software Industry: The Move up the Value ChainSummaryKey TermsDiscussion QuestionsMini Projects