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ITES, Information Technology Enabled Service, is defined as outsourcing of processes that can be enabled with information technology and covers diverse areas like finance, HR, administration, health care, telecommunication, manufacturing etc. Armed with technology and manpower, these services are provided from e-enabled locations. This radically reduces costs and improves service standards. In short, this Internet service provider aims in providing B2B ecommerce solutions.

Introduction of IT enabled services

The Indian Information Technology (IT) and Information Technology enabled Services (ITeS) sectors go hand-in-hand in every aspect. The industry has not only transformed India's image on the global platform, but also fuelled economic growth by energizing higher education sector (especially in engineering and computer science). The industry has employed almost 10 million Indians and hence, has contributed a lot to social transformation in the country. Furthermore, Indian firms, across all other sectors, largely depend on the IT & ITeS service providers to make their business processes most efficient and streamlined. Indian manufacturing sector has the highest IT spending followed by automotive, chemicals and consumer products industries. With global BFSI (banking, financial services, insurance) clients accounting for over 40 per cent of Indian IT vendors' revenues, the industry is poised to go beyond US$ 100 billion mark in 2012. Moreover, industry body Nasscom predicts that the ITeS industry will bring in around US$ 225 billion by 2020, wherein 80 per cent of the growth would come from the presently untapped sectors and regions.

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Major classifications of IT Enabled Services

Following is a fairly detailed generic classification of IT Enabled Services which already exist or which have potential for evolving into areas of entry:

Customer Interaction Services such as Call Centers Finance and Accounting Services such as back office data processing for Airlines, etc. Engineering and Design Services such as outsourced design activities Human Resources Services such as outsourced payroll preparations, etc. Animation for movies and TV serials, cartoon strips, etc. Translation, Transcription and Localization such as Medical Transcription Services. Network Consulting and Management covering outsourced network designing and maintenance. Data Search, Integration and Analysis covering areas such as preparation of legal data bases, research & preparation of reports based on data bases on past records, etc. Marketing Services such as bureaus for marketing products or services based on Call Centers or local market data bases, etc. Web Site Services for creating site contents, advertising, etc. Remote Education for utilizing IT infrastructure to strengthen formal education system for remote and expertise starved areas. Medical Consultancy by providing expert advice based on data or making available data bases. Secretarial Services through bureaus which utilize information technology for offering secretarial help.

Role of customer in service delivery in context of IT enabled services

Customers play a very vital role in successful delivery of service as customers are often present in the place where service is produced (Delivered) Customers alone can influence whether the delivered service is as per customer defined specifications.

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Other customers who are present in the Service space can also influence the Service positively or negatively. The level of participation of customers varies from Service to Service. In High level of participation. E.g. B to B projects like providing software solutions & consultancies. In Moderate level of participation customers inputs are necessary to facilitate effective delivery of service Service provider provides the Service & only the customers presence is required to avail the service In many Service deliveries other customers also affect the service delivery in a positive or negative way. This can influence the customers perceptions of Service quality and affect customer satisfaction.

Important characteristics of the IT-enabled services policy

Some of the important unique characteristics of these policies would be as follows: 1. Monthly declaration indicating the services rendered, invoices raised and invoices paid will have to be submitted by the exporters in the prescribed form. No separate overdue report will be necessary. In case of non-payment, the loss covered would be the invoices accepted but not paid, invoices raised but not yet accepted and services rendered but not invoiced (for one billing cycle only). 2. The policyholder has to specify in advance the manner in which the work in progress would be estimated. (The reports could indicate the volume of work done and the rate to be applied on the defined unit to arrive at the work done. It could be a document giving the man hours spent and rate per man hour or it could be a simple number of days worked and rate per day). 3. Liability of the Corporation would be for the services rendered and reported in the monthly declaration. 4. The Corporation will have the right to examine the books of accounts and other documents of the exporter either on its own or through an

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authorized agency prior to admission of claim. Certification by banks may be dispensed with in cases where it is felt that it is not possible. 5. The contract should provide for a clear acceptance mechanism in respect of services rendered and, if possible, a procedure for arbitration. It should also provide for rectification of mistakes errors and also omissions. The Corporation would not cover any loss due to errors or omissions. 6. The documentary requirements for the Policy would be specified separately for each type of risk taking into consideration the special nature of the transaction. Prior to admission of claims, the Corporation may seek a verification of exporters books of accounts either by its own officers or by outside professionals.

Factors leading to growth in the IT/ITes sector are:

Low operating costs and tax advantage. Favorable government policies. Technically qualified personnel easily available in the country. Rapid adoption of IT technologies in major sectors as Telecom, Manufacturing and BFSI. Strong growth in export demand from new verticals and non-traditional sectors as public sector, media and utilities. Use of new and emerging technologies such as cloud computing. SEZ as growth drivers; as more of SEZs are now being set up in Tier II cities and about 43 new tier II/III cities are emerging as IT delivery locations.

All these factors have given IT/ITES industry in India a strong competitive position with high market share.

Challenges confronted by IT enabled services

The sustainability of impressive growth of Indian economy has been questioned in the wake of some challenges in the form of lack of social infrastructure, physical infrastructure; IT infrastructure, agricultural and industrial sector reforms, rupee appreciation etc.

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Challenges in the field of IT and ITES like rising labour costs, rapid growth in demand for talented manpower/quality staff, high attrition rate, etc are some other limiting factors. The growth of IT and ITES is having social, economic, health, ethical and environmental implications also It is also important to point out here that the measurement of output , productivity, non-availability of data or availability of data after a time lag are other problems confronted with in case of services. The problem gets further compounded because of the entry of new species of services (like IT, ITES etc ) & lack of development of concepts on the one hand and non-inclusion of unpaid households on the other. Therefore, it is too difficult inclusion of unpaid households on the other. Therefore, it is too difficult to achieve the same level of output in terms of quality.