ABSTRACT
IT is one of the most important industries in the Indian economy, being the backbone of industrial development. It has shown huge growth in recent years. The liberalization of the Indian economy in the early 1990s played a major role in the growth of the IT industry of India. Its importance arises from the fact that it is a service industry providing support services to every business and non-business organization. It is a cash-rich industry with enough cash generated from its operations to meet its daily business expenditures. The billing of the man-hours based on the revenue recognition is the source of revenue. The IT industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The ITITES industry has two major components: IT services and Business process outsourcing (BPO). This sector has also led to massive employment generation.
