Stages in Multiple Innovations in Software Firms: a Model Derived from Infosys and NIIT Case Studies

This chapter presents a model of stages in multiple innovations in software firms derived from in-depth studies of innovations in two Indian software firms, Infosys and NIIT. The firms stand out in the Indian software sector in terms of the rapidity of their growth, the recognition received and the impact made by them in influencing the practices of firms following similar lines of business. They provide a contrast in terms of the scope of their activities and market foci. Infosys has focused dominantly on the international market while NIIT has harnessed the opportunities provided by both the domestic and international markets. The case studies are based on data gathered from each company’s annual reports, websites, published articles, the company’s own publications and interviews with key executives. We began by tracing the early stages of the companies, the conditions in the external environment and their early innovations. By external environment we refer to the set of forces that influence a firm’s choices and their implementation but are outside its control. We followed the response of the environment to the innovations of the companies and the companies’ own response to it in terms of further innovations. The chapter is organized as follows. We present a brief review of the relevant literature and follow it with case studies of Infosys and NIIT. This is then followed by a distillation of a model to explain multiple innovations in software firms.