India’s IT and ITeS services with exponential growth are a unique export-led success story which has put India on the global map. While India has achieved a brand identity in this sector, other developing countries are trying to emulate India’s
example. Besides its impact on growth (both direct and indirect), it is also a provider of skilled employment both in India and abroad, generating direct employment for nearly 2.8 million persons and indirect employment of around 8.9 million in 2011-
12. The IT-ITeS industry has four major subcomponents: IT services, business process outsourcing (BPO), engineering services and R&D, and software products.
The IT and ITeS sector has started facing competition from any developing countries. While the EU has the highest share in computer and information services exports, followed by India and the USA, many new competitors like China, Israel and the Philippines have emerged in recent years. Between 2005 and 2011, the annual average growth of computer services was
69 per cent in the Philippines, 28 per cent in Sri Lanka, 59 per cent in Ukraine, 27 per cent in the Russian Federation, 37 per
cent in Argentina and 35 per cent in Costa Rica. Even if in some cases the export values are relatively low, the average annual
growth of computer services in these economies is well above the average of the top exporters.