This paper examines the technical efficiency of software companies in India employing a stochastic frontier production function approach for a panel data of 73 software companies for the period 1996-2005. This period was characterized by financial deregulation and restructuring programs. The empirical results revealed that the technical efficiency of software companies decreased during the study period, and the Indian software industry, on an average, utilized below 50% of their potentialities due to its dependence on exports, service-oriented products and lack of linkage with the R&D institutions. The study also observed a considerable variation in efficiency of different companies in the Indian software industry.
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Volume (Year): IV (2007) Issue (Month): 3 (August) Pages: 43-61 Download reference. The following formats are available: HTML
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Handle: RePEc:icf:icfjie:v:04:y:2007:i:3:p:43-61
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