Case Studies for Assessing Development Potential of IT Service Industry in Pune and Chittagong

1. Background

ㆍThe importance of IT industry is growing for a nation’s growth and development as the industry has potential to create synergy with core industries in an economy.

ㆍIT service has the capacity to transform a developing economy into an economy with more high value-added industries.

ㆍHowever, developing countries lack assessment frameworks at the city level and ability to design and implement different policies for different cities to develop IT service. 

2. Purpose

ㆍTo present policy solutions and assessment frameworks by conducting case studies on IT industry development in Pune, India and Chittagong in Bangladesh 

3. Project Description

ㆍ A literature review of the IT service industry included:

-  the definition of the industry and industry competitiveness at country- and city-level

-  ways to promote the industry through IT and other related industries.

ㆍDesigning a three-step assessment frameworks:

- Step 1. Development of diagnostic indices

- Step 2. Consensus Building Forum (collecting information through a series of discussions with the IT service industry stakeholders in Pune and Chittagong)

- Step 3. Providing specified policy recommendations for Pune and Chittagong

ㆍListing policy tasks by priority to develop IT service in those two cities

4. Impacts and Benefits

ㆍ The three-step assessment frameworks designed by KRIHS helped identify and list policy tasks to develop IT service industry in the cities. 

ㆍ Difficulties identified and solutions suggested for Pune and Chittagong are as follows: 

- Pune needs to improve international and city-level connectivity by implementing the on-going international airport plan without delay, developing a comprehensive urban development plan, and establishing a promotional agency. 

- Chittagong needs to establish an education system and offering overseas training to develop human capital and construct local IT industry complex.

ㆍ The three-step assessment framework can provide policy suggestions not only for policy makers in Pune and Chittagong but also in other developing countries.