IT Industry Industry Context The information technology (IT) industry is one of the most robust industries in the world. More than any other sector or aspect of the economy, this sector has higher productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and businesses characterize this rapidly growing sector. Both software and hardware development involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management systems. Due to its easy accessibility and wide range of IT products available, the demand for IT services has increased significantly over the years. The IT sector has emerged as a major global source of growth and employment. Economies of scale for the information technology sector are high. The marginal cost of each unit of additional software or hardware is insignificant compared to the added value that comes with it. A wide variety of services fall under the domain of the information technology industry. Some of these services are as follows: • Systems Architecture • Database Design and Development • Networking • Application Development • Testing • Documentation • Maintenance and Hosting • Operational Support • Security Services Infosys Technologies works in all major functions of the IT industry and is part of the Subset of the software industry. Type of Industry The Indian software industry grew from just $150 million in 1991-92 to a staggering $5.7 billion (including over $4 billion in software exports) in 1999-2000. No other Indian industry has performed so well against global competition. According to a NASSCOM-McKinsey report, annual revenue projections for the Indian IT industry in 2008 amount to $87 billion and market openings are emerging in four broad sectors: IT services, software products, IT-enabled services and e -business, thereby creating a number of opportunities for Indian businesses. In addition to the export market, all these segments also have a domestic market component. Other key observations from the report show that: • Software and services will contribute over 7.5% to India's overall GDP growth • IT exports will account for 35% of total exports from India • Potential of 2.2 million jobs in IT sector by 2008 • IT industry will attract foreign direct investment (FDI) of 4-5 billion US dollars • Market capitalization of IT stocks will be around 225 billion US dollars Per exports of 50 billion dollars are expected this year, 2008.