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Exercises · Q9

Q.Explain the role of Information Technology and IT-enabled Services (IT/ITeS) in India's economic growth.

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Information Technology (IT) — chiefly software development and related technical and systems services — and IT-enabled Services (ITeS), which cover voice and non-voice back-office processes such as customer support, data processing and research support performed on behalf of clients abroad, together form the most internationally visible part of India's tertiary sector.

India's advantage in this field has rested on a combination of factors: a large pool of English-speaking, technically educated graduates able to work with clients in other English-speaking economies; wage costs that, for a long period, were considerably lower than those in the developed economies that were the main buyers of these services; and a time-zone difference from North America and Europe that allows India-based teams to provide continuous, round-the-clock ('follow-the-sun') service delivery. …

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