ACKNOWLEDGEMENT

I take this opportunity to present my vote of thank to all those guidepost who really acted as lightening pillars to enlighten my way throughout this project That has led to successful and satisfactory completion of this study. I am really grateful to my COD Mr. Rajnish shankhdhar for providing me with An opportunity to undertake this project IT Sector in India Lastly, I thank almighty, my parents, brother, and friends for their constant encouragement without which this assignment would not be possible

NAME-Ankit pandey CLASS-MBA IB 2nd sem ENROLL-

INTRODUCTION
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. When computer and communications technologies are combined, the result is information technology ,INFOTECH". Information Technology (IT) is a general term that describes any technology that helps to produce, manipulate, store, communicate, and/or disseminate information. When computer and communications technologies are combined, the result is information technology, or infotech". Information technology 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 area associated .Today, the term information technology has ballooned to encompass many aspect of computing and technology. 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. Owing to its easy accessibility and the wide range of IT products available, the demand for IT services has increased substantially over the years. The IT sector has emerged as a major global source of both growth and employment .It exports software and services to nearly 95 countries around the world. The share of North America (U.S. & Canada) in Indias software exports is about 61 per cent

The IT Sector can broadly Classified into:

. IT- Software These companies help in developing and implementation of different software for their clients worldwide. These software could be for documentation, security services, banking softwares etc. 2. ITES Business process outsourcing (BPO) Major Corporations across the world outsource their back-office operations to some companies. E.g. Employee payroll for a US companys global workforce is maintained by an Indian BPO. Slowly the definition is expanding to Human resources, accounting, logistics, legal processes etc.

3. IT- Hardware and peripherals - The stuff you can actually see and touch, and would likely break if you threw it out a fifth-story window, is hardware. This would include laptops, desktops, Storage devices, Networking devices, LCD, printers etc.
4. IT- Education This segment provides training for employment in the other segments. This would include companies providing various certification courses, like Java, Oracle etc. These companies also provide training for employees in corporate sector. Recently, some companies have also expanded this service to cater to schools and colleges. This sector has made significant contributions to Indias economic growth in terms of GDP increase, foreign exchange earnings as well as employment generation. Its contribution to GDP has increased tenfold in last decade, from 0.6% to 6% till 2009-10. The sector has helped India transform from a rural and agriculture-based economy to a knowledge-based economy. Besides this, the lives of people have been positively influenced by direct or indirect contribution of IT sector to various parameters such as employment, standard of living, per-capita income etc

What are the Growth Driver of IT in India ?

1. Easy availability of Talent pool and cost advantage The sector is human power and knowledge-oriented and this cost accounts for more than 40% of overall cost. Indians are considered to have better mathematical skills required for writing software. The easy availability of this talent pool makes it a long-term advantage. Widespread knowledge of English makes this pool employable, as compared to other countries like China, Japan etc. Also, it is 5 to 8 times cheaper to employ an Indian technologist than one from developed countries and thus the business has been flowing to India over the years. 2. Process and Quality Nearly all the Indian software companies take CMM (Capability Maturity Model) certification, which is the benchmark of quality management. Out of approximately 250 companies reaching supreme level i.e. level 5 of CMM, 60 are from India. This gives the impression of the company being dependable and hence, helps them tap the market easily.

3. Supportive government policies In early 1970s when Americans began looking off shore for software development, the government policies of India were not much supportive. However, post liberalisation the government recognised the potential and took supportive stance towards IT by reducing import tariff on Hardware and Software, developing Software Technology Parks and introducing legislative actions to protect intellectual property (e.g. Information technology act 2000). Indian government policies are framed in a way that ensures maximum benefit out of IT outsourcing to India.
4. Unique geographic location The major consumer of IT products so far has been the US. The time difference between India and US is 12 hours and it offers economy of 24 hours a day by communication equipment.

What are the Future Outlook of IT in India?

After recession, the year 2010 has seen steady recovery by the sector. Global markets have seen a growth of 5% in GDP, with developing nations growing faster than developed nations. IT spend in 2011 is expected to grow nearly 4%. Worldwide IT spending will also benefit from the accelerated recovery in emerging market. According to NASSCOM, India can reach $ 130 Billion in IT revenue by 2015, with CAGR of 14%. With this, it would be contributing to 7% of annual GDP and creating 14.3 million employment opportunities. With the government taking active measures to stimulate the growth of IT sector and emergence of BPO and KPO over last few years, India is expected to climb the global value and knowledge chain. In long-term we can expect the Indian IT sector to see good growth. Different segments of the sector are set to experience different growth rates. BPO industry will experience high growth but the Software and ITeS segment is expected to see slower growth. However, on company basis each company has to compete against other domestic as well as global player. They have to adapt new business models to compete with global players e.g. Cloud, On-demand services, and SaaS. With increased threat from countries like China, the companies will suffer loss unless they change business models. It is very important that while investing in a company, an investor selects a sector, where the longterm future prospects are bright. In the above case, we have seen that the IT sector is expected to have good growth in the long run. Also, it is equally important that the company has an excellent financial track record

LEGAL ASPECTS AND POLICIES

This speedy growth of IT Sector is undoubtedly due to the efforts of Indian government and the other developments that took in the other parts of the globe T Act 2000: The arrival of the Internet and the World Wide Web made it possible for people to communicate and transact over cyber space. It was a revolutionary step for humanity, but it also created a significant need for the regulation and governance of these activities, a requirement that lead to the creation and implementation of cyber laws across the globe. India became the 12th nation in the world to adopt a cyber law during 2000 From the perspective of e-commerce in India, the IT Act 2000 and its provisions Contain many positive aspects. Firstly, the implications of these provisions for the e-businesses would be that email would now be a valid and legal form of communication in our country that can be duly produced and approved in a court of law The IT Act also addresses the important issues of security, which are so critical to the success of electronic transactions. The Act has given a legal definition to the concept of secure digital signatures that would be required to have been passed through a system of a security procedure, as stipulated by the Government at a later date Under the IT Act, 2000, it shall now be possible for corporate to have a statutory remedy in case if anyone breaks into their computer systems or network and causes damages or copies data. The remedy provided by the Act is in the form of monetary damages, not exceeding Rs. 1 crore

CONCLUSION: Information technology (IT) or information and communication technology (ICT) is abroad subject which deals with technology and other aspects of managing andprocessing information, especially in large organizations. Particularly, IT deals withthe use of electronic computers and computer software to convert, store, protectprocess, transmit, and retrieve information. Over the past 20 years, its prevalencehas dramatically increased so that it is now a part of nearly every aspect of daily life