Since the second decade of globalisation, the Indian Information Technology (IT) Industry made the India's repute at international level. The importance and contribution of the industry have increased over the time in terms of share in gross domestic product, exports and employment generation. The IT industry is export oriented; hence, any slowdown in the global economy, particularly the USA has direct impact on the growth of the industry. India is comparatively advantageous, supported by talented human capital, low wage/cost, 12 hours time difference with the USA. Overall technical efficiency (OTE) of software firms, constituted of pure technical efficiency (PTE) and scale efficiency (SE), is measured through data envelopment analysis software. The OTE of the Indian software industry increased but was mostly driven by SE rather than by PTE. In the concluding remarks, the paper suggests that the exports of IT industry should be diversified to multiple countries and the need of an hour are invest in Research and Development, having long term effect to sustain the global lead.
IT, Gross domestic product, Exports, Employment, Overall technical efficiency, Pure technical efficiency, Scale efficiency
