Rapid advances in information technology (IT) and the resulting global connectivity are fueling dynamic growth in the services sector. Demand for IT and IT-enabled services (ITES) is estimated to represent a $500 billion annual market, of which only about 20 percent has been realised. Thus, this sector is creating new opportunities for economic growth, social empowerment, and grassroots innovation in developing countries. The potential for employment for youth and women is a particular benefit. This book is a practical guide for policy makers aiming to grow their IT services and ITES industries. It defines the development impact of the two industries and then analyses factors crucial to the competitiveness of a country or location-including skills, cost advantages, infrastructure, and a hospitable business environment. It examines the potential competitiveness of small countries and of least developed countries specifically. This volume presents the Location Readiness Index, a modeling tool developed by McKinsey & Company for the World Bank and the Information Development Program.
The index helps countries to identify their areas of relative strengths and weaknesses and to focus their efforts on interventions with the greatest likelihood for success. The book concludes by discussing specific policy options for enabling growth in the IT services and ITES industries.