Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced

within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living Attrition rates have been remarkably low and are dropping. This is also related to investment in workforce education and development. As Indian IT companies have focused on keeping employees happy and promoting from within, turnover rates at top Indian outsourcing companies have been stable or dropping over the last few years. At present us/uk account for 80 % of the existing offshorin in india -In June 1991, India government established the first software park in Bangalore and took preferential policies. allowed foreign enterprises Thus, many famous IT companies establish research centers and production base in India, such as Microsoft, Inter, Apple and IBM. Some companies even divert more than half of software and development project to India. Along with coming into India, these famous companies bring about not only precious fund but also advanced supervise and technology. At present, India has 18 software parks and 7,500 listed companies, government also plan to establish new software park in undeveloped areas[5]. These positive policies basically become great power for India software development. -Operational excellence (OE) is a competitive advantage: it translates to increased production flexibility, improved customer responsiveness, and cost minimization. We can advise on all aspects of your business operations to streamline functions and optimize performance. -Nasscom international affiliations -manmohan The IT and related services sector contributes eight percent of our (Indias) GDP and 25% of our exports. It employs three million people directly. The inability of IT companies to operate in the US market, would affect our economy.

We are also confident of achieving our medium term objective of reducing the Current Account Deficit to 2.5% of our GDP. -Rangachary Som Mittal, president, NASSCOM, said: "Given the difficult globalenvironment, it becomes very important for the industry to attract foreign investors. Encouraging exports is one way of doing so and therefore it becomes important for an export-centric Indian IT-BPM industry to attract more and more foreign investments into India. Such initiatives will help global and Indian multi-national companies expand operations, attract high-value investments and restore investment confidence." Last year, the Prime Minister's Office had constituted the Rangachary Committee to determine the approach to taxation of the IT sector under the existing legislative framework. The Government rescinded and modified the circulars pertaining to taxation of R&D centres in India, which will play an instrumental role in developing software solutions. Further, the SEZ rules were also modified to meet some of the specific sectoral characteristic of the IT sector. The government has eliminated a minimum land requirement for setting up SEZ for IT/ITeS, but a minimum processing area requirement is applicable as per city category. -Rupee depreciation theoretically benefits margins of IT companies as a large proportion of costs are in rupees, while revenues are largely in foreign currency. The theoretical sensitivity of US dollar and Indian rupee to margins is about 30 basis points (bps) for every 1% depreciation in domestic currency and about 1.5% on earnings for every 1%rupee depreciation, the research note said.

-Motivation for injection of FDI and MNCs The Indian IT-BPM industry will grow at a rate of 14 per cent this year. -Paving the way for the development and consolidation of the information technology sector in the city, the Centre on Friday approved the setting up of a 202-sq km Information Technology Investment Region (ITIR) in and around Hyderabad with an investment potential of over Rs 2.19 lakh crore and potential of creating 15 lakh direct jobs.

"The Government of India (Cabinet Committee on Economic Affairs) has considered and approved the proposal of the state government for setting up of an ITIR in an area of 202 sq kms (50,000 acres)," ITE&C department release said.
An integrated hardware and software investment region is a great boost to the already strong industry presence that we currently have.

-The Government plays an important role in the ITmarket, both as a buyer and as a facilitator. In its role as a buyer, the Indian Government needs to catch up with the rest of the world on ITspendingits ITspends as a percentage of GDP have been significantly lower than Governments for developed economies. In recent years, Government has taken the right steps in some areas for example, UID, education. Going forward, Government needs to focus on providing more ITenabled citizen services, improving efficiencies in the public sector, investing in disruptive technologies, standardizing data, and promoting shared services. These initiatives will need to be supported by a strong execution and governance model to effectively leverage IT.

The role of ITis not limited only to consumers and companies, but also extends to the economy at large. The sector continues to add to employment through creation of new, more valuevalue added jobs. By helping create more jobs in other parts of the industry, the ITindustry also has a multiplier effect. This direct and indirect effect on productivity and employment makes the growth of ITsector a key engine for the growth of the Indian economy.

Acomparison of Indias ITspends with more developed economies (as shown in Exhibit 1.4) shows that the Indias overall ITspend as a percentage of GDP is less than 1 percent significantly lower than the global average of 2.5 percent7. The United States has actively adopted IT, with well established business models developed around new digital innovations. In The United States, sustained investments in ITand effective use of technologies have led to an increase in productivity levels. This effect on increased labour productivity, combined with positive effect on employment, both direct and indirect, is likely to be a key driver for GDP growth in India in the years ahead. -Computer-aided design (CAD) is the use of a wide range of computer-based tools that assist engineers, architects and other design professionals in their design activities. CAD was really a replacement for the traditional drafting board

CAD is used in the design of tools and machinery and in the drafting and design of all types of buildings, from small residential types (houses) to the largest commercial and industrial structures (hospitals and factories).

CAD is mainly used for detailed engineering of 3D models and/or 2D drawings of physical components, but it is also used throughout the engineering process from conceptual design and layout of products, through strength and dynamic analysis of assemblies to definition of manufacturing methods of components. It can also be used to design objects. -A Web 2.0 site may allow users to interact and collaborate with each other in a social media dialogue as creators of user-generated content in a virtual community, in contrast to websites where people are limited to the passive viewing of content. Examples of Web 2.0 include social networking sites, blogs, wikis, folksonomies, video sharing sites, hosted services, web applications, and mashups --

In a sign that high skilled Indian talent remains much in demand, as many as 25 more global companies have established R&D centres in India since the beginning of 2012. This takes the total number of MNC R&D centres in India to about 1,031. India would be strategic for the growth of the company, that it would tap the domestic market as also support its global clients from here. -Legal
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. It 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. 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. Digital signatures have been given legal validity and sanction in the Act. --

Software copyright is the extension of copyright law to machine-readable software. Software copyright is used by proprietary software companies to prevent the unauthorized copying of their software. free and open source licenses also rely on copyright law to enforce their terms. -Income tax act Depreciation on computers and computer software at 60 percent