Current/Future Capability [Skill Set, Good continuous Supply of skilled people, Education & Training system] , Cost Advantage , Maturity [Experience, Success Stories] and Legal Process/IPR Protection Laws are probably some of the 'IMPORTANT CORNER STONES" for the sustenance & growth of India's Advantageous Position w.r.t IT & ITES Landscape.

When you explode the above items independently, India seems to have enough reserves, ideas and future plans in place for keeping them going...

Within this IT is 85% & ITES 15% [72 Billion$ Industry in 2009], Employs 2.2 Million People directly [Estimated Direct + Indirect employment of this Industry = 8.7 to 9.0 Million!]. Current Size & Head Start also vital in continuing the eminent position.

I have to divide also 3 key components of India’s dominance dimension ..

1) Indians [of course the benefit of this special breed! is not only
to India!, already probably this is more to developed economies than
subcontinent: It is of course to India’s advantage that Indians can
influence many things in india’s favour!]

2) IT & ITES Ops with in India the Physical Boundary.

3) Indian IT & ITES Companies all over the world [In developed as well as developing economies]

All above 3 items above are important for a holistic & integrated dominance!.  Domestic IT&ITES is about 15% and ITES Exports about 85% of the total business volume… [It is a different subject altogether that domestic market can be multi times bigger than current size!]

Factors working in India’s Favour:

1)  Supply of trained MP required for the Industry [6 Million in Degree Colleges any time and 1.5 in Engineering + 1-2 Million in PG / Adv training]

2)  English Language Speaking/Writing Skills , Analytical & Logical reasoning skills & work-orientation.

3) Already India has significantly upgraded its quality of services , [Therefore ONLY COST is the reason is not entirely valid, though this is also a reason and my feel is that this reason will disappear and still not affect India]… [Many IT Companies are involved in End to End solutioning for fortune 500, and Low end BPO Jobs are moving to KPO [Knowledge Process O/s].

4)  The emerging economy world refers  as ‘BRICS’ Group – Brazil , Russia, India, China and South Africa – independently some of BRCS may have capabilities similar to india, but overall capability in near term likely to fall short of India’s integrated capability.
5)  To the extent possible Rapid Growth & Development happening in Physical Infrastructure & Telecom Capabilities [Back bone for rapid growth of any industry]

6)  On the cost side, IT & ITES will rapidly move from Metros [Chennai, BLR,DEL,HYD, MUM+PUN] to identified 40 Tier-II and Tier-III Cities; This is expected to reduce the cost of operations by 30-35%. [Today 95% of IT/ITES work is in Metro, In next 10years it will be
60:40 between metro & 40 non-metro cities], So india will grow more balanced on  opportunities.

I am an Optimist!, and very bullish about India [So is Many VC & Investment Bankers/Firms all over the world!], …But I am neither globally successful warren buffet or locally powerful QGM!... So Influence of My opinion & thought is limited!.