Unit 3: IT Enabled Services and Pervasive Technologies

Introduction to IT Enabled Services (ITES)

IT Enabled Services (ITES) refer to all services that use information technology to improve efficiency, deliver value, and support business processes.
These services are delivered remotely, often from low-cost countries like India, using digital tools, internet, and communication technologies.

ITES = Technology + Service Delivery
Supports Industries like Banking, Healthcare, Retail, Insurance, Telecom, Logistics

Categorization of IT Enabled Services

ITES can be grouped into two categories:

A. General ITES Services

These are standard, widely used services across industries.

General ITES	Description	Real-Life Example
Customer Support	Call center, chat, email assistance	Amazon customer support
Data Entry & Processing	Digitization, form filling, invoice processing	Banks scanning KYC documents
Technical Support	Troubleshooting hardware/software	HP, Dell tech support
Back Office Operations	HR, payroll, accounting	Genpact handling payroll for companies
Content Development	Writing, designing, multimedia	Educational course creation
Transcription Services	Medical, legal or business transcription	Hospitals digitizing medical records

B. Specialized ITES Services

High skill, knowledge-intensive services.

Specialized ITES	Description	Example
KPO (Knowledge Process Outsourcing)	Analytics, finance, market research	Gartner research, Deloitte analytics
LPO (Legal Process Outsourcing)	Contract drafting, litigation support	Law firms outsourcing to India
RPO (Research Process Outsourcing)	Scientific/technical research	Pharmaceutical research
HRO (Human Resource Outsourcing)	Recruitment, onboarding, HR analytics	Naukri.com HR solutions
Medical Coding & Billing	Healthcare documentation	US hospitals outsourcing to India
Financial Services Outsourcing	Investment analysis, auditing	JP Morgan back-office in India

Role of BPO in E-Business

BPO = Business Process Outsourcing
It is a major part of ITES and supports e-business by handling processes efficiently and cost-effectively.

How BPO Supports E-Business

1. Customer Care – Order support, complaints, returns
2. Order Processing – Inventory update, invoice generation
3. Digital Marketing Support – SEO, content, campaigns
4. Data Analytics – Customer behavior analysis
5. IT Helpdesk – Website, server, software support
6. Finance & Accounts – Billing, auditing
7. HR Support – Hiring and payroll management

How ITES Supports an E-Commerce Business

Customer Order → Website Database → 
BPO Team Processes Order →
Inventory Check → Payment Verification →
Logistics Coordination → Shipment →
Customer Support (queries/returns)

ITES Industry in India

India is the world leader in ITES/BPO services.

A. Industry Size

• Indian ITES-BPO industry value: USD 245–260 billion (approx, incl. IT + ITES)
• Over 4.5 million employees in the sector
• Contributes 7.5% to India’s GDP
• India serves 140+ countries

B. Why India Is a Global Hub

Factors	Explanation
Low Cost Advantage	Cost is 50–60% cheaper than US/Europe
Large Skilled Workforce	2nd largest English-speaking professionals
Strong IT Infrastructure	Global IT parks, cloud-enabled networks
Government Support	STPI, SEZ, Digital India, tax incentives
24/7 Service Capability	Supports global time zones

C. Major ITES/BPO Hubs in India

• Bangalore – IT capital, software development
• Hyderabad – Data analytics, BPO, AI
• Gurgaon/Noida – Customer service, fintech
• Pune – Product engineering, support
• Chennai – Finance & accounting services
• Kolkata – Back-office operations

Current Trends in ITES in India

Trend	Explanation
Automation & AI	Chatbots, RPA handling routine tasks
Cloud Computing	Remote work, SaaS services
Data Analytics & Big Data	Insights for marketing & decision-making
Cybersecurity Services	Data protection, ethical hacking
Global Capability Centers (GCCs)	MNCs opening their own back offices
Work-from-home BPO	Virtual customer support teams

Pervasive Technologies in ITES

Pervasive technologies = technologies that are present everywhere and used continuously in digital services.

A. Key Pervasive Technologies

1. Cloud Computing

• Stores data and applications on remote servers
• Used in: Amazon Web Services (AWS), Google Cloud

2. Artificial Intelligence (AI) & Machine Learning

• Chatbots (Swiggy, Zomato)
• Voice assistants (Google Assistant)

3. Internet of Things (IoT)

• Smart devices exchanging information
• Example: Amazon Alexa, Smart logistics tracking

4. Mobile Technologies

• Mobile banking, payment apps (Paytm, PhonePe)

5. 5G & High-Speed Internet

• Enables faster video calls & real-time support

6. Blockchain

• Used in secure payments, contracts, supply chain

Diagram: Pervasive Tech in ITES Delivery

          +-----------------------+
          |  Cloud Computing      |
          +-----------+-----------+
                      |
        +-------------+--------------+
        |                            |
+-------+-------+            +-------+-------+
| Artificial    |            |   IoT &        |
| Intelligence  |            |   Mobility     |
+-------+-------+            +-------+-------+
        |                            |
        +-------------+--------------+
                      |
          +-----------+-----------+
          |   ITES Delivery       |
          +-----------------------+

Real-Life Examples of ITES in Action

1. Amazon India

• Customer calls handled by Indian BPO centres
• Data analytics for product recommendations
• Logistics systems supported by IoT & AI

2. HDFC Bank

• Outsources customer support and KYC verification
• Uses AI chatbots for customer service

3. MakeMyTrip

• ITES teams manage flight searches, bookings
• Cloud servers handle millions of users daily

Mobile Commerce (M-Commerce)

Mobile commerce refers to buying and selling products or services using mobile devices such as smartphones and tablets.

Why M-Commerce is Growing?

• India has 800+ million smartphone users
• Fast internet (4G/5G)
• UPI revolution
• Apps offering convenience & personalization

Types of Mobile Commerce

Type	Description	Example
Mobile Shopping	Purchasing via apps or mobile sites	Amazon app, Flipkart app
Mobile Banking	Money transfer, balance check	SBI YONO, HDFC Mobile Banking
Mobile Payments	Digital wallet & UPI-based payments	PhonePe, Google Pay, Paytm
Mobile Ticketing	Booking bus/train/flight tickets	IRCTC app, RedBus
Mobile Entertainment	Movies, gaming, music	Netflix, Spotify
Location-Based Services	Nearby stores, cabs, offers	Uber, Swiggy, Zomato

Mobile Payments (M-Payments)

Mobile payments allow users to pay digitally using mobile devices.

Types of Mobile Payment Methods

1. UPI (Most Popular in India)

• Instant bank-to-bank transfer
• Example: Google Pay, PhonePe

2. Mobile Wallets

• Money stored in Wallet
• Example: Paytm Wallet, Amazon Pay

3. NFC-Based Payments

• Tap-and-pay using smartphones
• Example: Samsung Pay, Apple Pay

4. In-App Payments

• Payments done directly inside apps
• Example: Netflix subscription, in-game purchases

Flowchart: How a Mobile Payment Works

Customer → Opens App (GPay) 
          → Enters Amount 
          → UPI Server Checks Bank 
          → Bank Approves Debit 
          → Payment Success Message

Omnichannel Commerce

Omnichannel commerce integrates online + offline channels to give customers a seamless experience.

Example: Reliance Trends / Vishal Mega Mart

• Customer browses product online
• Checks store availability
• Tries product in store
• Pays online or offline
• Returns product via any channel

Features of Omnichannel Commerce

Feature	Explanation
Unified Inventory	Same inventory for online & offline
Click & Collect	Order online → pick up from store
Ship-from-Store	Nearest store delivers product
Cross-Channel Returns	Return in-store even if bought online
Consistent Branding	Same offers everywhere

IoT Integration in Commerce

IoT = Internet of Things → smart devices connected to the internet.

How IoT Enhances E-Commerce

IoT Application	How it Works	Example
Smart Inventory Management	Sensors track stock levels	Amazon warehouses
Smart Payments	Payments through wearable devices	Smartwatch payments
Connected Supply Chain	Real-time tracking of shipments	GPS-enabled delivery vans
Smart Retail Stores	Sensors detect customer movement	Reliance & Tata smart stores
Smart Home Shopping	Voice-based shopping	Amazon Alexa orders groceries

Diagram: IoT in E-Commerce

Smart Device → Sends Data → Cloud System → 
Analytics Engine → Automated Action (Order/Alert)

Pervasive Computing

Pervasive computing means technology everywhere, available anytime, seamlessly integrated into daily life.

Examples:

• Smart homes (lights, ACs controlled by mobile)
• Smartwatches (health monitoring)
• QR code payments
• Amazon Go stores (no checkout counters)

Legal Framework: IT Act of India (2000)

The Information Technology Act, 2000 provides the legal foundation for electronic transactions, cybersecurity, and digital signatures in India.

Key Provisions of the IT Act

1. Legal Recognition of Electronic Records (Section 4)

• Digital documents are legally valid like paper documents.

2. Digital Signatures (Section 5)

Digital signatures are legally valid for:

• Contracts
• Agreements
• Application forms

3. Cybercrimes & Penalties

The Act covers offences like:

• Hacking
• Data theft
• Identity theft
• Cyber fraud
• Unauthorized access
• Online harassment

Penalties include:

• Fines up to ₹1 crore or more
• Imprisonment up to 3–7 years

Amendments (IT Act 2008)

Key additions:

Provision	Explanation
Section 66C	Identity theft (fake accounts, impersonation)
Section 66D	Online cheating, fraud
Section 67	Publishing obscene content
Section 69	Government can intercept digital communication for security
Data Protection Provisions	Punishments for leaking personal data

Business Implications of the IT Act

Area	Impact on Business	Example
E-Contracts	Businesses can sign contracts digitally	Myntra vendor agreements
Digital Payments	Legally protected electronic transactions	UPI, net banking
Customer Data Protection	Companies must safeguard customer data	E-commerce must secure user data
Cybersecurity compliance	Companies must prevent hacking & breaches	Banking apps using encryption
Cybercrime Prevention	Penalizes fraud affecting customers	Credit card fraud cases
E-Governance	Online filing, tax, e-signatures	GST filing

IT Act Compliance Flow

Collect Customer Data → Secure Storage (Encryption) →
Obtain Consent → Allow User Rights → 
Monitor Cybersecurity → Report Breaches

Real-Life Examples

Amazon India

• Uses strong data encryption (IT Act compliance)
• Has grievance officer as required by Indian law

Zomato

• Uses OTP-based verification (prevents identity theft)

UPI Apps (PhonePe, Google Pay)

• Must follow RBI + IT Act guidelines
• Use multi-factor authentication