IT Industry, Information Technology Industry

By: EconomyWatch   Date: 29 June 2010

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Information technology, and the hardware and software associated with the IT industry, are an integral part of nearly every major global industry.
 

 

Information technology, and the hardware and software associated with the IT industry, are an integral part of nearly every major global industry.
 

The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased 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 enterprises characterize this rapidly growing sector.

The Information Technology Association of America (ITAA) explains 'information technology' as encompassing all possible aspects of information systems based on computers.

Both software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management 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.

Features of the IT Industry at a Glance

  • Economies of scale for the information technology industry are high. The marginal cost of each unit of additional software or hardware is insignificant compared to the value addition that results from it.
  • Unlike other common industries, the IT industry is knowledge-based.

     

  • Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid pace of economic growth.

     

  • The IT industry helps many other sectors in the growth process of the economy including the services and manufacturing sectors.

The role of the IT Industry

The IT industry can serve as a medium of e-governance, as it assures easy accessibility to information. The use of information technology in the service sector improves operational efficiency and adds to transparency. It also serves as a medium of skill formation.

MAJOR STEPS TAKEN FOR PROMTION OF IT INDUSTRY

Domain of the IT Industry

A wide variety of services come 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
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