Ekomate

Ekomate Systems and the Indian Software industry

Introduction

This case describes the importance of network relationships in the internalization of a software firm Ekomate Systems which is based in Bangalore, India. This company face major challenges in achieving international growth so network relationships can help this company to overcome some difficulties.

Challenge/Problem: New small firms are born global, operating in different geographical markets. Build international relationships from the start: collaboration, outsourcing and competition with overseas organizations. Networks have influenced growth in Ekomate’s systems, HOWEVER developing and leveraging network relationships is neither straightforward nor easy. Focusing on the US market and having no connections in other markets had a negative effect on Ekomate’s business operations and hindered its growth, especially after the downturn of the economy and 9/11 unexpected events. Tom had some problems forming relationships outside his comfort zone, something he did not plan or anticipate. The main problams for Ekomate are:

• How can Ekomate survive as a differentiated IT provider

• Should Ekomate focus on Microsoft platform projects or explore other type of work as open sourse development

• How can Ekomate diversify on other ares of offshoring such as business process outsourcing

• How to compete with the bigger Indian IT players in a flar world

• Should Ekomate work in other areas such as manufacturing, aerospace and defence instead of being a generic IT provider

Industry: IT, software

Timeline:

• 1996: Ekomate systems was founded by Tom Thomas

• 1947*:strategic decision taken by Indian government to locate key defense laboratories away from the nation’s Capital New Delhi, in Bangalore which was the focal point for ekomate.

• 1996 to 1998: Ekomate’s clientele was solely domestic

• 1998: Tom secured his first US contract

• 1996 to 2002: US was the largest market and the company...