Factors Affecting the Growth of the ICT Industry: The Case of Bhutan

  • Deepika RaiEmail author
  • Sherah Kurnia
Conference paper
Part of the IFIP Advances in Information and Communication Technology book series (IFIPAICT, volume 504)


The ICT industry that consists of IT and IT- Enabled Services (ITES) components has been contributing significantly to the economy of many countries globally. Due to its importance, understanding factors affecting the growth of this industry is critical for developed and developing countries. Currently, there is still a limited understanding of relevant factors and their influence on the IT/ITES industry growth in developing countries. Bhutan, in particular, is a small developing country that is striving to build this industry to diversify its economy. This study is the first study that explores factors affecting the growth of the IT/ITES industry in Bhutan. Qualitative research involving different stakeholders is employed to gain an understanding on factors facilitating and inhibiting the growth. The study findings indicate that Human Resources, Policy, Infrastructure, Foreign Direct Investment (FDI) and Culture are particularly crucial for Bhutan’s context. Due to the uniqueness of Bhutan, this study helps drive the development of the industry and enhance the current understanding in this area particularly in the context of developing countries.


IT/ITES industry ICT industry Developing countries Bhutan 


  1. 1.
    Joshi, K., Mudigonda, S.: An analysis of India’s future attractiveness as an offshore destination for IT and IT-enabled services. J. Inf. Technol. 23(1), 21–227 (2008)Google Scholar
  2. 2.
    Sudan, R., Ayers, S.: The Global Opportunity in IT-Based Services. …, World Bank [Internet] (2010). Accessed 9 Apr 2015
  3. 3.
    Gartner Says Worldwide IT Spending is Forecast to Grow 0.6 Percent in 2016 [Internet] (2016). Accessed 3 Feb 2016
  4. 4.
    (United Nations). Globalization For Development : The International Trade Perspective, New York (2008)Google Scholar
  5. 5.
    Techatassanasoontorn, A.A., Huang, H., Trauth, E.M., Juntiwasarakij, S.: Analyzing ICT and development. J. Global Inf. Manage. 19(1), 1–29 (2011)CrossRefGoogle Scholar
  6. 6.
    Kurnia, S., Karnali, R.J., Rahim, M.M.: A qualitative study of business-to-business electronic commerce adoption within the Indonesian grocery industry: a multi-theory perspective. Inf. Manage. 52(4), 518–536 (2015)CrossRefGoogle Scholar
  7. 7.
    Carayannis, E.G., Sagi, J.: Exploiting opportunities of the new economy: developing nations in support of the ICT industry. Technovation 22(8), 517–524 (2002)CrossRefGoogle Scholar
  8. 8.
    Harbi, S., Amamou, M., Anderson, A.R.: Establishing high-tech industry: The Tunisian ICT experience. Technovation 29(1), 465–480 (2009)CrossRefGoogle Scholar
  9. 9.
    Heeks, R.: Using competitive advantage theory to analyze IT sectors in developing countries: a software industry case analysis. Inf. Technol. Int. Dev. 3(3), 5–34 (2006)CrossRefGoogle Scholar
  10. 10.
    Bhattacharjee, S., Chakrabarti, D.: Investigating India’s competitive edge in the IT-ITeS sector. IIMB Manage. Rev. 27(1), 19–34 (2015)CrossRefGoogle Scholar
  11. 11.
    Chebolu, R.M.: A critical perspective of information technology (IT) industry growth in India. ANVESHAK Int. J. Manage. 3(1), 152–160 (2014)CrossRefGoogle Scholar
  12. 12.
    Abara, A.C., Heo, Y.: Resilience and recovery: The Philippine IT-BPO industry during the global crisis. Int. Area Stud. Rev. 16(2), 160–183 (2013)CrossRefGoogle Scholar
  13. 13.
    Mitra, R.M.: BPO Sector Growth and Inclusive Development in the Philippines, World Bank Group (2011). Accessed 10 March 2015
  14. 14.
    Heeks, R., Nicholson, B.: Software export success factors and strategies in “Follower” Nations. Compet. Change 8(3), 267–303 (2004)CrossRefGoogle Scholar
  15. 15.
    Ein-dor, P., Myers, M.D., Raman, K.S.: Information technology in three small developed countries. J. Manage. Inf. Syst. 13(4), 61–89 (1997)CrossRefGoogle Scholar
  16. 16.
    Ein-Dor, P., Myers, M.D., Raman, K.S.: IT industry development and the knowledge economy: a four country study. J. Global Inf. Manage. 12(4), 23–49 (2004)CrossRefGoogle Scholar
  17. 17.
    Dedrick, J., Kraemer, K.L.: National technology policy and computer production in Asia pacific countries. Inf. Soc. 11(1), 29–58 (1995)CrossRefGoogle Scholar
  18. 18.
    Tan, F.B., Leewongcharoen, K.: Factors contributing to IT industry success in developing countries: the case of Thailand. Inf. Technol. Dev. 11(2), 161–194 (2005)CrossRefGoogle Scholar
  19. 19.
    Poh-Kam, W.: Leveraging the global information revolution for economic development: Singapore’s evolving information industry strategy. Inf. Syst. Res. 9(4), 323–341 (1998)CrossRefGoogle Scholar
  20. 20.
    Trauth, E.M.: The Culture of An Infromation Economy. Kluwer Academic Publishers, Dordrecht (2000)CrossRefGoogle Scholar
  21. 21.
    Vaidyanathan, G.: Technology parks in a developing country: the case of India. J. Technol. Transf. 33(3), 285–299 (2008)CrossRefGoogle Scholar
  22. 22.
    IDA International Pte Ltd. Recommendations for Bhutan ICT Industry Development (2012)Google Scholar
  23. 23.
    Bhutan Infocomm and Media Authority. Annual Report 2015 (2015)Google Scholar
  24. 24.
    World Bank. Implementation Completion and Results Report (2013)Google Scholar
  25. 25.
    Neuman, W.: Social Research Methods Qualitative and Quantitative Approaches. Allyn & Bacon, Boston (2011)Google Scholar
  26. 26.
    Yin, R.K.: Qualitative Research from Start to Finish. The Guildford Press, New York (2016)Google Scholar

Copyright information

© © IFIP International Federation for Information Processing 2017

Authors and Affiliations

  1. 1.Department of IT and TelecomThimphuBhutan
  2. 2.University of MelbourneMelbourneAustralia

Personalised recommendations