Impact of the Global Financial Crisis on the Efficiency of Indian IT Firms

Abstract

This study uses a balanced scorecard framework to identify proxy variables for the inputs and outputs of a sample of firms in India’s information technology and IT-enabled services sector. It uses these variables and an additive data envelopment analysis model to identify and analyse the inefficiency of these firms for three years before and after the global financial crisis of 2008. In particular, the study focuses on the responses of Indian firms to economic adjustments made by their clients in developed countries after the crisis.