Technologies ellamey.com

       Information Technology (IT), as defined by the Information Technology Association of America (ITAA), is "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." IT deals with the use of electronic computers and computer software to convert, store, protect, process, transmit, and securely retrieve information.

       Today, the term information technology has ballooned to encompass many aspects of computing and technology, and the term is more recognizable than ever before. The information technology umbrella can be quite large, covering many fields. IT professionals perform a variety of duties that range from installing applications to designing complex computer networks and information databases.

        A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as the management and administration of entire systems. When computer and communications technologies are combined, the result is information technology, or "infotech". Information Technology (IT) is a general term that describes any technology that helps to produce, manipulate, store, communicate, and/or disseminate information. Presumably, when speaking of Information Technology (IT) as a whole, it is noted that the use of computers and information are associated.

Multinationals in India
        Information technology has been a promising sector for India, generating revenues both for the domestic as well as the global market. India's IT potential has attracted multinationals to grab a share of the pie and cash in on the IT boom. India offers a market with very high returns for multinationals flocking to invest in their India units. Also, the increase in purchasing power and the rapid business expansion of the small and medium enterprises (SMEs) holds promise for global information technology (IT) giants who look at a 100 per cent year-on-year growth in their small and medium businesses (SMBs) market in India.

• Capgemini, Europe's largest consulting and computer services firm is gradually moving its internal support services to India.
• After sourcing IT applications from some IT firms last year Wal-Mart will now expand its existing operations given India's impressive IT capability to cover more firms and augment its work in the United States.
• Intel –the globally renowned chip maker is looking to invest more than US$ 1 billion in India over the next three years in partnership with Indian and foreign hardware firms to prepare light weight personal computers.
• Cisco posted over 100 per cent year-on-year growth in its SME business in India.
• Oracle is expecting over 100 per cent growth in India for its CRM business on the back of increased technology awareness and need for cost-effective customer servicing.
• Yahoo! Inc and Tata Sons subsidiary firm Computational Research Laboratories (CRL) have entered into a joint agreement to make available-EKA, a supercomputer (the fourth fastest) in the world for cloud computing research in India.
• Dell India's witnessed 80 per cent sales over last year with revenues to the tune of US$ 700 million.
• World's leading chip designer firm ARM is expanding its India design centre to make it the largest outside Britain.
• IT biggies like Microsoft, IBM, Cisco, Oracle and a host of other IT entities are working overtime to tap the smaller and medium businesses.

Domestic Markets
        India's domestic market has also become a force to reckon, with the existing IT infrastructure evolving both in terms of technology and depth of penetration. Global IT companies as well as domestic biggies like IBM, Accenture, HP, TCS, HCL and Wipro have witnessed a remarkable growth in their business.

The domestic information technology business has become far too attractive to ignore. India Inc's demand for IT services and products has bolstered growth in the domestic sector with deal sizes going up remarkably and contracts worth US$ 50-100 million up for grabs.

Nasscom vice president Rajdeep Sahrawat feels the domestic IT market has evolved significantly from what it was earlier. “There are mega deals up for grabs both in the private and public sector. For instance the railways ERP project, the BSNL systems integration, networking projects, IT work from ministry of finance and private telecom companies, banks and others are offering multi-year contracts that are over US$ 100 million”

Global market intelligence and consulting firm IDC reports that the domestic IT and ITeS market will grow at 24 per cent in 2008 to touch US$ 27.35 billion. IDC sees a higher local demand driven by growth of broadband, expansion of Software-as-a-Service (SaaS), service oriented architecture, virtualisation as also networking projects. The net margins in the domestic market are at about 9-11 per cent which has improved considerably in recent years. Of late IT service providers, MNC's and domestic firms have recognised the potential of the home market and have developed strategies exclusively for the domestic market according to a research by Gartner.

Growth
        The Indian information technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise. Though worldwide IT budgets are expected to increase by 3.3 per cent in 2008, slightly higher than 2007, the Indian firms would report stronger-than-average IT budget increases of around 13 per cent, according to Gartner.

• India's software and services exports are expected to reach US$ 40.8 billion whereas the domestic market is expected to touch US$ 23.2 billion dollars in FY08 as per the 'Strategic Review 2008' by IT industry body Nasscom.
• With small and mid sized businesses driven by the increased use of technology the country's information and communication technology market is estimated to grow 20.3 per cent annually to reach US$ 24.3 billion by 2011.
• A survey carried out to assist business heads of major outsourcers to identify reliable, innovative and tech savvy firms had listed twenty-nine India based companies amongst the best 100 IT service providers including Tata Consultancy Services, HCL Technologies, Genpact, and WNS Global Services amongst others.

According to the global infotech analyst International Data Corporation, the Indian IT and ITeS market is estimated to grow at the rate of over 16 per cent to become a US$ 132 billion industry, significantly, the domestic market alone is expected to become over US$ 50 billion, with a CAGR of about 18.4 per cent. Simultaneously, the IT and ITeS exports are estimated to more than double to US$ 78.62 billion in 2012.

The Indian IT and ITeS industry had recorded a growth rate of 22.4 per cent in 2007 to become a US$ 60.57 billion industry, US$ 49.47 billion in 2006.