Efficiency dynamics and sustainability of the Indian IT-ITeS industry: An empirical investigation using DEA

Abstract

Efficiency considerations of the Indian IT-ITeS industry have come to the forefront especially with slowdown in the US and other major industrialised economies. Using the DEA technique, this paper argues that the key to sustainability rests on the operational efficiency of the players. Primary data for this study has been collected from STP Kolkata for a period of 15 years. The results reveal that (technical) efficiency varies across industry segments and increases with greater global orientation of the unit. The study prescribes segment-specific policies for sustainability of the industry instead of a uniform policy that has been the usual practice.

Keywords

• India
• IT-ITeS industry
• DEA
• Policy