Empirical studies that focus on impact of ICT for development usually make a distinction between ICT as a production sector and ICT as an enabler of socioeconomic development. Although the developed countries are reaping very high benefits from the ICT, its diffusion in developing countries has been limited. It is often argued that for developing countries benefits from ICTs are more likely to accrue from consumption rather than production. In the context of the selected five South Asian countries, the ICT penetration is relatively very low, although there have been some success stories in software production sector and IT-enabled service sector in the region. Generally speaking, the author argues that the developing countries need to integrate ICT policies more closely into economic strategies, which can be done by strengthening the links between development and technology agencies via the organizational structure of policy-making bodies.