BANGALORE, INDIA: The IT-BPO Industry and the use of Information and communication technologies (ICT) across different sectors is poised to play an increasingly central role as a catalyst to social and economic transformation in India and how it interfaces with the rest of the world, said Raja M Mitra, senior consultant, The World Bank Group.

“India constitutes an example of a country which has begun to emerge as a significant power, both in terms of technical and business process innovation with the IT-BPO off shoring industry being a prime illustration." the senior world bank consultant said at a conference organized by the CII here today.

According to Mitra the importance of IT industry cannot be measured only in terms of its share of GDP, exports, imports, investment and employment. The industry serves as a transformational catalyst for change in the way knowledge is created, shared and applied.

If developed effectively, IT can offer opportunities of "leapfrogging" in infrastructure development and cost-effective outreach of government and private sector services, he observed. IT is one of the critical components of an investment climate that promotes economic growth and competitiveness.

In his latest study, 'IT Industry in Transformation: Opportunities and challenges for India', Mitra points out that in the wake of the economic slowdown which began in September 2008, in India, the export revenue growth pertaining to the IT-BPO industry had became uncertain. However, the IT- BPO services and telecommunication sector has remained an ascending sector in the Indian economy.

Further, according to Mitra, the Indian economy, and the IT and ITeS-BPO industry in particular, is facing transformational opportunities. If handled well, this offers the possibility of India to become one of the world's leading powers in IT and other areas of Knowledge based industries both in terms of production and innovation.

The ICT industry and the use of ICT-related applications are still in an early stage of development in India and other economies. It's impact is poised to increase significantly in 2010s and beyond.

According the senior consultant the television, radio and telephony have already had major effect on most groups in the India society. The next stage of the ICT revolution will involve the more widespread diffusion of telephony, Internet, networked computers smart devices software applications and various forms of Multi-media content.

“The ICT revolution will have major implications for the development of the software and ITeS industry and inter-sector linkages within the India and internationally,” said Mitra.