One interesting strategy for product firms would be to outsource development of toolkits and addons to create network effects. Take the casea of IBM or Microsoft outsourcing product development toWipro, Infosys and TCS. When these system integrators create products for product companies, they develop expertise with the products and would start recommending them to their clients. As a result, outsourcing is more than a cost play, it could result in rapid diffusion of the product into new markets. We found something similar in our work on opensource software development. Our conclusion was that when governments adopt platforms like Linux they create a market for programmers with expertise on that platform. This results in the opening of training centers and programs that help create a talent pool with that skill set. This talent pool helps jump-start more projects using that software and this creates more demand for talent pool and so on..