Competitiveness in information technology service exports

The US service export base is expanding rapidly as firms seek to penetrate international markets in search of growth opportunities. This article explores mechanisms that a sample of 67 US-based information technology (IT) firms use to export their services to one selected market, Mexico. A correlation analysis revealed that most firms adapt and extend existing IT services for the Mexican market, and consider cultural understanding imperative to successful operations in Mexico. The results also found that firms use a variety of business arrangements (joint ventures, licensing) and a wide array of contract vehicles (time and materials, firm fixed price). © 1995 John Wiley & Sons, Inc.