ABSTRACT
It is now clear that the information technology (IT) industry has emerged out of three major sources: growth in information and communications technology (ICT), innovation of knowledge-based goods and services and globalization of economic activity. For the purpose of the present chapter, however, it is considered that the main drivers of the information industry all over South Asia are: information and communications technology (ICT), foreign direct investment (FDI) in IT/software services, and the emergence of IT-enabled services (ITES). The products of ICT and IT/software services are well known (Hossain 2003; Houghton 2003). But what exactly is the new ITES?
