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A DEA Approach to Measure the Performance of Indian Software Companies: An Empirical Study

International Journal of Applied Strategic Management (ISSN: 1742-8204) Volume 1 Issue 3

Surajit Ghosh Dastidar
Doctoral Research Scholar
ICFAI Institute of Management Teachers (IIMT)
ICFAI University

Abstract

This empirical study deals with measurement and comparison of the performance measures the performnce of Indian Software Companies using Data Envelopment Analysis (DEA) methodology. The methodology applied is Data Envelopment Analysis (DEA). The inputs and outputs of the software companies were identified and using DEA, the performance (efficiency) scores for each company were arrived at. The results were used to segregate the efficient companies and the inefficient companies. Further analysis was done to suggest measures to be taken by the inefficient companies to become efficient. These measures are in terms of reallocating their resources to make them more efficient. The efficiency scores of the companies are also compared to their total revenue earnings.

It has been observed that the top Indian Software Companies in terms of their total revenue earnings are not necessarily the most efficient compan y ies as identified by DEA methodo logy. ones.

Keywords: Data Envelopment Analysis (DEA), efficiency, performance evaluation, software.

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