Software production for export requires a high level of sophisticated skill, a factor in which India came to be relatively abundantly endowed as a consequence of its past educational development. India invested serious effort in making a success of the opportunity. The initial abundance of highly skilled manpower would not have lasted long in the absence of concentrated efforts to augment its supply. Successful entry in software production and export was quickly followed by a large expansion in IT training. Currently two of the largest IT companies together provide training to up to 300,000 people a year. It should be strongly emphasized that once again it is India's initial advantage in the supply of highly trained scientific manpower that has made it possible to expand IT training - a highly skill-intensive activity - so quickly[11]

Recent World Bank studies have illustrated the huge payoffs that investments in knowledge can bring. Through investment in education and information technologies, Ireland has transformed its once rural-based economy and is now well known exporter of computer software. Thirty years ago, 70 percent of Finland's exports were wood and paper products. Now, more than 50 percent of the country's exports are knowledge-intensive products and it is a world leader in information technologies. And in 2001, modern infrastructure, a technology park and services support structure helped attract $556 million in foreign direct investment to the Vilnius region of Lithuania, accounting for over half of the country's total foreign direct investment in that year.

Initiatives by countries to improve skilled workforce: To increase enrolments at upper-secondary and tertiary education, Ireland changed educational financing policies to reduce the tuition burden of students. Singapore's Investment Promotion Agency (IPA) and the Economic Development Board (EDB) have recently made an attempt to shape the Singaporean education system which is highly responsive to industry demands. This effort began in 1997 with the World Class Universities Program, with an aim to set up ten world educational institutions in Singapore to deliver quality courses on demand-driven subjects. Singapore already has eight American and European schools that have strong links to industries. The amount of education and R&D delivered through these schools is expected to meet the skills needs of the industries