Advances in information technology, liberalisation of the telecommunications sector and availability of skilled labour have permitted India to reap advantages through the globalisation of some services. The initial impetus provided by exports of software and services has now got additional support from the exponential growth of the IT-enabled sector (ITES).
According to the National Association of Software and Service Companies (NASSCOM), India’s software and service exports recorded a strong growth of 34 per cent in 2004-05. The software sector [including ITES-Business Process Outsourcing (BPO)] now employs more than one million people, having recorded a compounded annual growth of nearly 30 per cent in employment during the period 1999-2005.