The new millennium catalyzed a shift inthe focus of South Asian economies to the service sector.The South Asian countries share many common characteristics- a young population, familiarity with the English language,and an emphasis on quantitative skills at the school level.This report on "Regional Collaboration on InformationTechnology (IT) Enabled Services-Smart Strategies for Jobsand Growth in South Asia" was initiated by the SouthAsia regional programs and South Asia poverty reduction,economic policy, finance and private sector developmentunit. It responds to a need expressed by our clientcountries for World Bank support to build their capabilityin the IT enabled services sector. The current study wascommissioned with a view to facilitate their efforts throughregional collaboration. This study suggests collaborativeinitiatives that could drive the growth of the industrythrough a two pronged approach: increase business throughjoint promotional activities, sub-contracting of work,building common standards and world class businesspractices; and develop supply side resources such as skills,support infrastructure and enabling policies. This studymakes practical recommendations for collaborative growthbetween the countries in South Asia, who aspire to becomethe region of choice for global outsourcing.