Abstract
The study examines global operations of software development companies from US and India which over the years have become key information technology (IT) players in software outsourcing in the world. The analysis indicates common business strategy of Indian software companies is not to compete head on with US counterparts and instead focus on acquiring niche, outsourcing markets that are still open and growing rapidly due to worldwide slowdown in IT spending budgets. A comparative analysis provides further insight on these companies' operational and financial competitive strengths and weaknesses in the marketplace. The impact of these companies on the global IT industry is also explored.