Backward & Forward Linkages in the ITES/ BPO Industry

Walk down the corridors of any college in Delhi, Bangalore or any of the metros and you will definitely find advertisements calling for executives to join in the “booming ITES industry” for a bright career. Talk to any graduate and ask him what is the easiest way to gain employment in India today and chances are he/she will point towards the ITES industry. After the software boom, this is probably the biggest wave, which has taken India by storm. The IT- Enabled Services Industry (ITES), would provide million jobs by 2008. As of now ITES industry accounts for almost 20 percent of India’s total software exports1. The effect of this industry is not only as far as providing direct employment to the people working in this industry but also to millions of others who are indirectly benefited by the boom in this industry. This paper firstly take a look at how the ITES industry is performing as of today and then moves on to examine how industries related to the ITES industry are being affected as a result of the boom in this segment. The segments investigated include real estate, transport, training, and recruitment. [Working Paper No. 0075]