While business groups benefit firms when markets fail, does group affiliation continue to be an advantage for firms in deregulated, globally competitive industries? I argue affiliation allows firms to tap into the knowledge and connections of sister affiliates. This enables them to attract clients from across more industries and foreign markets than can unaffiliated firms, and attain higher international sales as well. Using data from the Indian software industry, I find support for these hypotheses but only for 2000-2002, when competition increased due to additional deregulation. These results suggest business groups continue to provide benefits to group-affiliated firms including information on market opportunities and reputation signaling to clients.