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This chapter analyzes the role of multinational corporations (MNCs) in the development of the software industry in India, Ireland, and Israel. These countries have experienced a high growth in the software industry especially during the 1990s. Software revenues reached $9.3 billion in Ireland and $8.3 billion in India in 2000. In Israel the software industry has reached a similar size (about $4.2 billion in 2001)[1–3]. Much of software growth in these countries is accounted for by exports, which represent about 75 percent of India’s total sales and about 84 percent of Irish sales [1, 2]. Similarly, exports represent about 73 percent of Israeli software sales [3, 4], in fact, while in 1990, software exports from Israel amounted to $90 million, by 2000, overseas sales had soared incredibly to $2.6 billion and even if the staggering average annual growth of 25 percent could not be maintained in 2000, the forecast was that exports would surpass $3 billion by the end of the year. Domestic sales grew by 10 percent per annum and overall sales for the industry were expected to reach $4.2 billion in 2001. These countries have benefited from historical linkages with the United States and the United Kingdom which have been reinforced by the communities of expatriates working for leading information and communication technologies (ICT) producers or large users such as financial institutions. Compared to other regions, these countries have been particularly successful in attracting foreign firms, which account for a significant share of national software activities, especially in India and Ireland. In the case of Israel and Ireland the local governments have introduced …