Risk Management In Software Outsourcing-A Portfolio Analysis Of India’s Case Based On Software Export Market Constitution | Weilin Zhao & Chihiro Watanabe

India, famous for its software outsourcing service, has achieved high growth rates in software exports in recent ten years. The figure of Indian software export destination shows that the US has been the dominant destination for more than a decade. The US is overall India’s largest customer in this sense. In other words, Indian software export is heavily dependent on the US market. Risks exist in software outsourcing market not only for outsourcers but also for software outsourcing service vendors. Thus, risk awareness and risk avoidance, in a word, risk management is undoubtedly very crucial for the sustainable development of software industry. From the perspective of risk management, this paper provides to give some suggestions for software outsourcing service vendors by means of the portfolio analysis of India’s software export market constitution. Though it is a simple two-market portfolio analysis model, the implications are significant for raising outsourcing service vendors’ awareness in risk management, future market strategy and industrial development.