Abundant talent available at lower cost, quality infrastructure in Indian cities, government incentives and growing domestic IT/BPO market are among the reasons, which have contributed to India being able to strengthen its leadership position. The industry attributes the success of Indian IT and BPO also to the support provided by the Government of India and individual State Governments through an enabling business policy and regulatory environment as well as information security provided by means of Indian laws and by voluntary action by industry associations. Recent analyses by experts have revealed that the above sources of strength are getting eroded and the industry is likely to face several challenges in future. In order to consider what further needs to be done by the Central and State governments to sustain and enhance India’s competitiveness the Group examined the evolving situation on each of the elements that have constituted a source of strength of industry so far.
