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An economist’s viewpoint of the Indian IT industry

Posted by Arun Uday on July 28, 2007

The preceding posts on Infy have set a good base for me to discuss something that I had intended to, which is the concept of “value creation” in a capitalistic system. We often come across this phrase “value chain”, a common platitude that we get to hear all the time being – “we are trying to move up the value chain”. It is important to therefore understand what this “value chain” means, who defines it and how one really moves up this “value chain”. I’ll need to delve a little into the fundamentals of economic theory here to make my point and like to apologize beforehand for the atypical long post.
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