A Critical Perspective of Information Technology (IT) Industry Growth in India

Factors Affecting the Growth of the ICT Industry: The Case of Bhutan

“…Human Resources. This industry is driven by human capital as a key component for production of knowledge or ideas [10,11]. For example, previous studies indicate that the IT/ITES industry in India advanced rapidly because of the availability of a large, well educated, high quality, English speaking workforce [1,9,10].…”

“…Similarly, the study by Carayannis & Sagi [7] highlights that one of the key factors contributing to the success of the IT/ITES industry is the possession of a highly-skilled worked force. Furthermore, Philippine's strength is in the ITES segment which is enabled by the availability of a large pool of highly-educated English speakers [11,12]. Previous studies also indicate important role played by government in offering incentives such as education and training grants [7,11] to build the human resources for this industry.…”

“…Thailand established software parks to accelerate the development of its software industry [5,9,20]. Technology parks played a crucial role for the industry growth in the Philippines by attracting manpower, FDI and local investment [11,12].…”

“…Policies such as fiscal incentives that includes tax advantage, subsidy and regulatory environment encourage the growth of the IT/ITES industry [5,7,11]. Policy can be used to attract FDI to establish subsidiary companies, increase FDI production and encourage collaborations with local firms [11]. Policy should also consider the local conditions such as protection and support for local firms' growth [7].…”

“…Countries such as the Philippines, Korea, Japan, Taiwan and India give preferential treatment to local firms' development while promoting FDI [7,12]. Furthermore, policy should promote entrepreneurial culture and encourage local firms to internationalize [11,19]. Finally, strong coordination among various stakeholders is required to ensure policy effectiveness [19].…”