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The Information Technology Industry has had a major impact on the progress of human society in this century. The article presents a view on the IT industry, its growth in India and the future of IT industry in India.

Information Technology

Information Technology is the application of computers and software to control information. It is also referred to as Management Information Services. The IT department of a company is accountable for maintaining information, safeguarding information, processing and transmitting information and for retrieving information.

History has witnessed several path breaking scientific achievements that have benefited mankind immensely. The discovery of fire, the invention of wheel, the industrial revolution, the automobile revolution and so on. But it can be said without any ambiguity the Information Technology revolution has made the greatest impact in this century. It has influenced greatly human progress in communications, trade, manufacturing, services, culture, entertainement, education, research, national defense and global security.

The Information Technology sector has made the world a global village, shrinking national boundaries and integrating cultures. The Information Technology industry has enabled India to accelerate in the path of growth.

Indian Information Technology Industry
The Indian Information Technology Industry is without any doubt the acknowledged world leader. The availability of technical human capital, proficiency in English, cost competitiveness, quality training institutes and favorable reforms has led to India being a most sought after destination for global companies to outsource their business.

Information Technology Industry

The Information Technology industry can be divided into:

IT Services, ITES BPO services and E Commerce.

IT Services
IT services can be further classified as Information services outsourcing, software support and installation, hardware support and installation, it training and education.

ITES Services
The ITES BPO services are a branch of Information Technology. Some of the fields within ITES are Customer Relationship Management (CRM), Back Office Operations, Accounting, HR services, market Research and consultancy services.

E Commerce
E commerce is a form of business where buyers and sellers interact through the internet rather than any physical exchange or direct contact. E commerce can be further classifieds into:
  • Production Processes: It would include procurement, ordering and replenishment of stocks, processing of payments, production control processes.
  • Customer Focused Processes: It would include promotional and marketing efforts, selling over the internet, processing of purchase orders and payments.
  • Internal Management Processes: It would include employee services, training, video conferencing and recruiting.
Future Trends
  • According to NASSCOM the revenue from information technology sector has risen from 1.2 per cent of the GDP in 1997-98 to 5.8 per cent of GDP in 2008-09.
  • The Indian government believes the export turnover from IT sector would be US $ 80 billion by 2011.
  • According to NASSCOM IT BPO exports (inclusive of hardware exports) grew by 16 per cent from US $ 40.9 billion in 2007-08 to US $ 47.3 billion in 2008-09.
  • According to various studies despite the global meltdown the Indian IT Industry is expected to be the fastest growing in the Asia Pacific region with a CAGR of 18.6 per cent.

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