Because India has a huge services industry and an almost non-existent
product-industry in software. Now, advocates of product based companies
abuse services companies with all the venom they ever possessed.
And sometimes rightly so. But an open source model can go very well
with the current software demographics in India. As Ajay Shah wrote
a decade ago :
, "Open source is a profound idea.... The enduring puzzle of India's software companies is their persistent inability to grow from projects to products. Open source is a powerful answer to this problem. Open source reduces the importance of products and raises the importance of services.
With open source software, Anyone can contribute by improving the code -- adding new features, correcting errors, etc. The open source universe avoids the waste involved in 'reinventing the wheel,' which takes place in all software companies. In the open source world, each programmer builds on the work of others before him. This brings down the cost of development."
Source : http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4250
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