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

Abstract : 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.