The role of dynamic capabilities in emerging economies has been an underresearched area. Based on our research, we believe that the nature of dynamic capabilities is fundamentally different in these economies. We investigate the dynamic capabilities evidenced in the quahty processes of software operations in a large multi-business Indian firm. We pay special attention to three patterns - evolutionary trajectory, nature of learning and benefits of business group affiliation. After due analysis, we find that dynamic capabilities are characterized by a different set of factors in an emerging economy - internal markets, liability of origin and ownership structure.