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Rapid advances in information technology (IT) and the resulting global connectivity are fueling dynamic growth in the services sector. Demand for IT and IT-enabled services (ITES) is estimated to represent a $500 billion annual market, of which only about 20 percent has been realized. Thus, this sector is creating new opportunities for economic growth, social empowerment, and grassroots innovation in developing countries. The potential for employment for youth and women is a particular benefit. This book is a practical guide for policy makers aiming to grow their IT services and ITES industries. It defines the development impact of the two industries and then analyzes factors crucial to the competitiveness of a country or location—including skills, cost advantages, infrastructure, and a hospitable business environment. It examines the potential competitiveness of small countries and of least developed countries specifically. This volume presents the Location Readiness Index, a modeling tool developed by McKinsey and Company for the World Bank and the Information Development Program. The index helps countries to identify their areas of relative strengths and weaknesses and to focus their efforts on interventions with the greatest likelihood for success. The book concludes by discussing specific policy options for enabling growth in the IT services and ITES industries.

This book aims to help policy makers take advantage of the opportunities presented by increased cross-border trade in information technology (IT) services and IT-enabled services (ITES). It begins by defining the two industries and estimating the potential global market opportunities for trade in each. Then it discusses economic and other benefits for countries that succeed in these areas, along with factors crucial to the competitiveness of a country or location, including skills, cost advantages, infrastructure, and a hospitable business environment, and examines the potential competitiveness of small countries and of least developed countries specifically. The volume also discusses policy options for enabling growth in the IT services and ITES industries. Appendix A introduces the Location Readiness Index (LRI), a modeling tool to help countries assess their IT and ITES industries. Finally, appendix B presents an analysis of the IT and ITES industries in Indonesia and Kenya as an illustrative application of the LRI.

IT-based services : global outlook -- Country competitiveness in the global market of IT-based services -- Policy options to enhance competitiveness -- Dimensions of the LRI : what is needed to be competitive? The LRI model -- Applying the LRI model to the United States, India, Indonesia, and Kenya -- Talent pool -- Cost -- Infrastructure -- Business and living environment -- Risk -- Market maturity -- Using the LRI to improve the IT/ITES landscape in Kenya and Indonesia -- Impact on the economy

'Infrastructure at the Crossroads' brings together lessons from the last two decades of World Bank engagement in infrastructure.It analyzes trends in the Bank's infrastructure lending, describes the evolution of the external environment and the Bank's own strategic priorities, and presents lessons about project design and appraisal, poverty.