Significant software development is taking place offshore in countries such as India.
Competitive pressures have induced many Indian software firms to apply for and receive
quality certifications like the ISO-9001and SEI-CMM. Although such quality
certifications have become increasingly popular in the US and Europe, there is very little
empirical evidence on the impact of quality certification on organizational performance.
This study is based on a three year sample of 66 Indian software firms. We find that
quality certification does not have a significant effect on the revenue per employee level,
nor the growth rate of these firms. These findings suggest that Indian firms, by operating
in a commodity market, have not been able to improve their efficacy in providing
software services and reap the benefits of superior software quality practices.