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General Papers

Internationalization strategies of emerging market-based multinationals: integration of Indian ICT-ITES companies on the Dutch service outsourcing market

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Pages 1374-1391 | Received 18 Aug 2015, Accepted 19 Mar 2016, Published online: 08 Apr 2016
 

ABSTRACT

This paper examines the entry of Indian information and communication technology–information technology-enabled services (ICT-ITES) companies on the Dutch service outsourcing market. Using this case study, the paper integrates two academic debates: the rise of emerging country-based multinationals and the international dynamics in the ICT-ITES sector. Indian ICT-ITES firms can no longer only rely on cheap labour in their home country and need to build global delivery capacity in order effectively to compete with Western ICT-ITES multinationals. By examining their entry strategy in the Dutch service outsourcing market, this paper highlights the difficulties of latecomer multinationals in entering the more profitable domains of the ICT-ITES market.

Acknowledgements

The authors would like to thank two anonymous reviewers for their constructive comments and advice.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 For comparison, IBM started in the Netherlands in the 1930s.

2 In 2014–2015, Dutch telecom company KPN had radio commercials in which it promoted its ‘Dutch cloud’, emphasising that with them your data will be safely stored in the Netherlands. See also http://www.computerweekly.com/blogs/outsourcing/2011/05/unclear-indian-data-protection-law-needs-clarity-for-it-industry.html.

Additional information

Funding

This work was supported by the Platform Outsourcing Nederland and by the Netherlands Organisation for Scientific Research [grant number 01.65.329.00].