Software exports have become a cause for excitement in dozens of developing nations. These are nations that are all searching for the recipe to become the “next India.” India, once known as a land of poverty, has now become an IT superpower. Major Western software companies, including Microsoft, Oracle, and SAP, are using Indian software centers to develop their products. India's independent firms compete with the top firms from the industrialized nations.

This excitement is understandable since many developing countries are primarily exporters of commodities, such as cotton or coffee. Other export sectors, such as textiles, handicrafts, assembly, or manufacturing, offer primarily low-skilled employment with low wages, often with “sweatshop” working conditions.