Role of It in Service Sector

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ROLE OF IT IN SERVICE SECTOR


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What is information technology

IT IS A COMBINATION OF TELECOMMUNICATIONS & COMPUTING TO

OBTAIN , PROCESS, STORE, TRANSMIT AN OUTPUT INFORMATION IN THE

FORM OF VOICE , PICTURES OR TEXT. THIS INCLUDE THE FOLLOWING:

i) SOFTWARE APPLICATIONS & OPERATING SYSTEMS.

2) WEB- BASED INFORMATIONS & APPLICATIONS SUCH AS DISTANCE

LEARNING.

3) iii) TELEPHONES & MEANS OF TELECOMMUNICATIONS

4) .iv) VEDIO EQUIPMENTS & MULTIMEDIA PRODUCTS.

5) v) WORLD WIDE WEB.

6) vi) ELECTRONIC DEVICES SUCH AS PHOTOCOPIERS. :


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IT CAN ATLEAST DO 3 THINGS: IT CAN PROCESS RAW DATA

INTO USEFUL INFORMATION.

ii) IT CAN RECYCLE PROCESSED INFORMATION & USE IT AS

DATA IN ANOTHER PROCESSING STEP.iii) IT CAN PACKAGE INFORMATION IN A NEW FORM SO ITS

EASIER TO UNDERSTAND, MORE ATTRACTIVE, OR MORE

USEFUL.


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PRESENT SCENARIO OF IT IN INDIA

PRESENT SCENARIO OF IT IN INDIA OUR SOCIETY IS BEING RESHAPED BY RAPIDADVANCE IN IT , COMPUTERS, TELECOMMUNICATION NETWORKS & OTHER

DIGITAL SYSTEMS THAT HAVE VASTLY INCREASED OUR CAPACITY TO KNOW,

ACHIEVE & COLLABORATE. THESE TECHNOLOGIES ALLOW PEOPLE TO TRANSMIT

INFORMATION QUICKLY & WIDELY, LINKING DISTANT PLACES & TO CREATE

COMMUNITIES THAT JUST A DECADE AGO WERE UNIMAGINABLE. TODAY ONE

CAN BUY A MUSICAL GREETING CARD WITH A SILICON CHIP THAT IS 100 TIMESFASTER THAN ENIAC. THIS EXTRAORDINARY PACE OF IT EVOLUTION IS BRINGING

PEOPLE & CULTURES TOGETHER & CREATING NEW SOCIAL DYNAMICS IN THE

PROCESS. THE RAPID EVOLUTION OF DIGITAL TECHNOLOGIES IS CREATING NOT

ONLY NEW OPPORTUNITIES FOR THE SOCIETY BUT ALSO CHALLENGES. ENTIRE

INDUSTRIES HAVE BEEN RESTRUCTURED TO BETTER ALIGN THEMSELVES WITH

THE REALTIES OF DIGITAL AGE


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ROLE OF INFORMATION TECHNOLOGY

ROLE OF INFORMATION TECHNOLOGY IT PLAYS A VITAL

ROLE IN TODAYS GLOBAL ECONOMY IT HAS MADE A

SIGNIFICANT IMPACT IN RESEARCH & DEVELOPMENT. THE

RESEARCH IS BEING CARRIED OUT IN NETWORKING,COMPUTING, DATA REPRESENTATION & MANY OTHER

AREAS FOR EXPLORING THE EXISTING METHODOLIGIES.

THE MAJOR AREAS IMPACTED BY THE ADVENT OF IT

INCLUDE BUSINESS, MEDIA, EDUCATION & SO FORTH


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INFORMATION TECHNOLOGY IN

BUSINES

IT PLAYS AN IMPORTANT ROLE IN BUSINESS ENVIRONMENT AS

EVERY ORGANISATION ADOPTS IT IN SOME FORM OR THE OTHER

TO PERFORM THE TASKS IN EFFECTIVE MANNER. IT CONTRIBUTES

TOWARDS NEW & EFFECTIVE WAYS OF PROCESSING BUSINESS

TRANSACTIONS, INTEGRATING BUSINESS PROCESSES,

TRANSFERRING PAYMENTS, & DELIVERING SERVICESELECTRONICALLY. IT INCLUDES BUYING & SELLING OVER THE

INTERNET, ELECTRONIC FUND TRANSFERS, SMART CARDS, DIGITAL

CASH & ALL OTHER WAYS OF DOING BUSINESS OVER DIGITAL

NETWORKS. IT HAS EFFECTED BUSINESS IN FOLLOWING WAYS:

COMPETITIVENESS

SECURITY

iii) COST BENEFITS

iv) MARKETING


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MANUFACTURING

CORPORATES ARE DEVELOPING A MANUFACTURING SOCIETY TO PROVIDEMANUFACTURERS,DISTRIBUTORS AND RESEARCHERS WITH STRUCTURED

METHODS AND PRACTICES FOR IMPLEMENTING TECHNOLOGIES IN

MANUFACTURING ENVIRONMENTS. USING IT ,SIMULATION SYSTEMS HAVE

BEEN DEVELOPED,WHICH ENABLE MANUFACTURERS TO VIRTUALLY PREPARE

PROTO TYPE PLANT LAYOUTS,OPTIMISE RAW MATERIAL USAGE,AND ASSESS

ERGONOMIC FACTORS PRIOR TO INVESTING IN PLANT REDESIGNS OR NEWFACTORIES .RESEARCHERS ARE DEVELOPING NATURAL LANGUAGE

INTERFACES THAT CAN HELP SIMULATE HUMAN TASKS IN A

MANUFACTURING OPERATIONS ENVIRONMENT. :


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IT IN PUBLIC SECTORTHERE IS A GREAT REQUIREMENT TO AUTOMATE SERVICES SUCH AS BOOKING OF

RAILWAY TICKETS & PAYMENT OF ELECTRICITY BILL. IT SECTOR HAS BECOME A

BOON FOR PUBLIC SECTOR COMPANIES BY HELPING THEM TO INCREASE THEIROUTPUT & EFFICIENCY.IT HAS ENABLED THE COMPANIES TO HAVE A GREATER

QUALITY CONTROL SO THAT THEY ARE ABLE TO MEET THE LAID STANDARDS. THIS

HAS BEEN POSSIBLE AS IT HAS BEEN ABLE TO:i) MINIMIZE DUPLICATION &

SHARING OF SCARCE RESOURCES.ii) PROMOTE & INSURE THAT IT SOLUTIONS ARE

COST EFFECTIVE, EFFICIENT & BUSINESS DRIVEN.iii) PROMOTE TRANSPERANCY &ACCOUNTABILITY IN THE PUBLIC SERVICE BY FACILITATING THE AVAILABILITY,

ACCESSIBILITY & SHARING OF INFORMATION


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DEFENCE SERVICES

INFORMATION TECHNOLOGY IN DEFENCE SERVICES TO HELPTHE MILIATRY IMPROVE READINESS & RESPONSE.

MORE FLEXIBLE, TIMELY & DEPENDABLE ACCESS TO

INFORMATION IS NEEDED.

IT CAPABILITY ALLOWS MILITARY PERSONNEL TO LITERALLYCONVERSE WITH COMPUTERS TO CREATE , ACCESS &

MANAGE INFORMATION & SOLVE PROBLEMS.

IT HELPS TO GAIN RELEVANT INFORMATION IN AN

ORGANISED & INTEGRATED MANNER THAT IS READILY

USEABLE BY MILITARY PERSONNEL. FOR E.G. PILOTLESSWARPLANES HAVE BEEN DEVELOPED TO COMBAT ENEMIES AT

THE TIME OF WAR. THIS HAS BEEN POSSIBLE BY GATHERING

INFORMATION & CONVERTING IT INTO TECHNOLOGY

THROUGH MEANS OF R&D.


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MEDIAINFORMATION TECHNOLOGY IN MEDIA SOME EXAMPLES OF IT USED IN MEDIA INCLUDE

AUDIO VISUAL EQUIPMENTS LIKE TELEVISION, RADIO, VCR, VIDEO CAMERAS & COMPUTERS.

THE MEDIA CAN BE BROADLY CLASSIFIED INTO 2 CATEGORIES:

PRINT MEDIA: IT IS THE MOST WIDE SPREAD OF THE MEDIA TECHNOLOGY. IT REMAINS THE

MOST WIDELY ADOPTED, PORTABLE, FLEXIBLE & ECONOMICAL MEDIA.

THR PRESENCE OF IT HAS GREATLY ENHANCED PRINT MEDIAS EFFECTIVENESS, MAKING IT AN

IMPORTANT SOURCE OF INFORMATION FOR E.G. AN EVENT OCCURRING IN THE REMOTEST

AREAS OF THE WORLD CON BE EASILY COVERED WITH THE HELP OF SATELLITE LINKS.

ELECTRONIC MEDIA:

ELECTRONIC MEDIA SUCH AS TELEVISION & RADIO ARE MUCH AHEAD AS COMPARED TO THE

OTHER TYPES OF MEDIA. MULTIMEDIA APPLICATIONS ( SOUNDS, VIDEOS & IMAGES ) ARE

INCREASINGLY BEEN USED AS PART OF GLOBAL REVELOUTION IN ELECTRONIC

MEDIA.INTERNET ALSO FORMS THE PART OF THIS MEDIA.


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EDUCATION

INFORMATION TECHNOLOGY IN EDUCATION THE EMERGING TECHNOLOGIES AFFECTED

THE WAY OF LEARNING AND THE WAY OF PROCESSES(LIKE TRANSACTION) ARE CARRIED

OUT.THE PRESENT EDUCTION SYSYEM IS FACING SUBSTAINSTIAL PRESSURE TO PREPARE THE

STUDENT TO LEARN,LIVE AND WORK IN THE DIGITAL AGE.IT HAS HELPED LEARNERS TO DEVELOP

PROBLEM SOLVING,ANALYTICAL & REASEARCH SKILLS. ELECTRONIC LEARNING:- STUDENTS AND

TEACHERS BOTH GAIN CONSIDERIABLE BENEFIT BY UTILIZING E-LEARNING TOOLS.E-LEARNING INCLUDES COMPUTER BASED TRAINING(CBT) & WEB BASED TRAINING(WBT) CBT IS

THE TRAINING WHERE A COMPUTER PROGRAM PROVIDES MOTIVATION AND FEEDBACK IN

PLACE OF A LIVE INSTRUCTOR.IT CAN BE DELIVERED THROUGH CD-ROM, LAN OR INTERNET.

WBT IS THE TRAINING,WHICH DELIVERS EDUCATIONAL CONTENT THROUGH A WEB BROWSER

OVER THE PUBLIC INTERNET, OR A PRIVATE INTRACT


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VIRTUAL CLASSROOM:-THIS CONCEPT INTRACTIVITY INVLOVES A STUDENT

WITH SOFTWARE WITH REACTS AND INTRESTS ,UNLIKE A BOOK.WITH THE HELP

OF VIRTUAL LEARNING, STUDENTS CAN; SEARCH THE DATABASE FOR THEIRVIEWS AND OF OTHER STUDENTS. LISTEN TO PRE-RECORDED AUDIO

COMMENTS TO ENHANCE KNOWLEDGE. CONVERSE ABOUT THE SUBJECT OR

RELATED MATTERS WITH THE TEACHER AND OTHER STUDENTS THROUGH E-

MAIL AND DISCUSSION GROUPS. USE APPROPRIATE RESOURCES TO SEEK,

ACCESS AND APPLY KNOWLEDGE. THROUGH VIRTUAL CALSSROOMS STUDENTSCAN GET ONLINE EDUCATION FROM REMOTE PLACES


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TRANSPORTATION

INFORMATION TECHNOLOGY IN TRANSPORTATION IN INDIA WITH THE ISSUE OF

COMPUTERISED RAILWAY TICKETS,THE ERRORS HAVE BEEN MINIMIZED A PASSENGER

CAN BOOK THE TRAIN TICKET FROM ANY PART OF THE COUNTRY. THE CINEMA

THEATRES IN ORDER TO AVOID QUEUES AN UNNECCESSARY RUSH FOLLOW THE

SYSTEM OF ONLINE TICKET BOOKING SO THAT THROUGH THE INTERNET ANY ONECAN BOOK TICKETS AT THEIR CONVENIENT PLACES THE APPLICATION OF IT IN THE

TWO MOST IMPORTANT TRANSPORT NAMELY RAILWAYS AND AIR TRANSPORT ARE

FOLLOWING


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RAILWAYS IT HAS BEEN USED EXTENSIVELY IN THE AREA OF RAILWAY

TRANSPORT BY THE DEVELOPED NATIONS ONLY IT HAS LED TO THE

DEVELOPMENT OF COMPUTERISED WAGONS,L

OCOMOTIVES AND TRAIN REPORTING SYSTEMS THAT TRACKS CARGO AND

WAGONS THROUGHOUT THEIR MOVEMENT WHICH HAS ENHANCED THE

EFFICIENCY AND SPEED OF FREIGHT OPREATIONS

ENABLING RAILWAYS TO PLAN THE MOVEMENT OF WAGONS MUCH MOREEFFECTIVELY

IT HAS ALSO IMPROVED CONSIDERABLY SHORT TERM TRAIN PLANNING

RAILWAYS CAN NOW PUBLISH AUTOMATED TIME-TABLE GIVING DETAILS OFTRAINS OPERATING BETWEEN DIFFERENT STATIONS,TRAIN TIMINGS ETC.


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AIR TRANSPORT THE BUSINESS VALUES OF IT APPLICATION IN AIRPORT IS IN THE

FORM OF COST CUTTING,

INCREASED OPERATIONAL EFFICIENCY AND ENHANCED SECURITY AMONG THE

BENEFITS THAT IT OFFERS.

THE CONCEPT OF E-TICKET ALSO BENEFICIAL FOR BOTH THE CUSTOMERS AND THECARRIER. WIRELESS COMMUNICATION CAN ENABLE AIRPORTS PROCESSES TO BE

EFFECTIVE EARLIER IN THE TRAVEL CHAIN WITHOUT ANY PHYSICAL SERVICE DESK.

GIS (GEOGRAPHICAL INFORMATION SYSTEM) ADDS VALUE & OFFER CONSIDERABLE

COST BENEFITS. DECISION SUPPORT SYSTEM (DSS) ARE ESSENTIAL TOOLS OFAIRPORT MANAGEMENT.


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BANKING IN FINANCIAL SECTOR

INFORMATION TECHNOLOGY IN BANKING IN FINANCIAL SECTOR TREMENDOUS

IMPROVEMENT HAS TAKEN PLACE IN THE INDIAN BANKING SECTOR BECAUSE OF

THE IT REVOLUTION. ALL THE PRIVATE & FOREIGN BANKS HAVE GONE FOR 100%

COMPUTERIZATION.

WITH THE HELP OF COMPUTERIZATION THE TRANSACTION TAKE PLACE AT A FASTER

RATE & THE WATING TIME OF A CUSTOMER IN A QUEUE IS GETTING MINIMIZED.

THE COST INCURRED ON INFRASTRUCTURE, FURNITURE & EMPLOYEES HAS GOT

DECREASED BECAUSE OF APPLICATION OF IT.

IN THE FINANCIAL SECTOR, OTHER SERVICES SUCH AS INSURANCE, LEASING

COMPANIES, MORTGAGE COMPANIES, INVESTMENT CONSISTENCY, STOCKEXCHANGES, SHARE REGISTERY & CUSTODIAL SERVICES LIKE DEPOSITARIES PROCESS

LARGE VOLUME OF DATA.


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THE BANKING & INSURANCE COMPANIES USE THE IT TO KEEP TRACK OF THEIR

CUSTOMERS, TRANSACTIONS & FINANCIAL NEEDS. STOCK MARKET USE IT FOR ON

LINE TRADING WITH THE HELP OF COMPUTER BASED TERMINALS CONNECTED TO

TRADING SERVERS. INVESTMENT CONSULTANCY SERVICES USE COMPUTER BASED

SYSTEMS FOR ANALYSIS OF FINANCIAL POSITIONS, INVESTMENT OPPURTUNITIES

AVAILABLE TO THEIR CUSTOMERS. IT IS CHANGING THE VERY CONCEPT OF CASH &

CREDIT THROUGHT THE WORLD. THE FOLLOWING TECHNOLOGICAL ADVANCEMENTSHAVE TAKEN PLACE IN WORLD OF BUSINESS PAYMENTS


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ELECTRONIC FUNDS TRANSFER (EFT) :

IT COVERS A WIDE RANGE OF TRANSACTION SERVICES SUCH AS

i) banking services

ii) funds transfer between accounts at the same bank or at differentbanks.

iii) stock brokerage, services like placement of orders of stocks.

iv) retail ATM services.

v) business transactions involving funds transfer between investment &

overdraft arrangements

ADVANTAGES OF EFT IMMEDIATE & OVERNIGHT TRANSFER OF FUNDS.ONLINE CREDIT AUTHORIZATION. REDUCED NEED FOR CUSTOMERS TO

CARRY CASH OR CHEQUE


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Automated Teller Machines (ATM)

ATMs

ATMs, though operational in the country for quite some time, are expected to make

a big head-way in India. It has been estimated that there are around 400,000 ATMs

worldwide out of which 1,00,000 are located in Japan alone. The latest generation

networked ATMs allow the user to perform upto 150 kinds of transactions ranging

from simple cash withdrawals and deposits, to fund transfer to trading in stocks to

buying mutual funds to something mundane like payment of electricity bills,booking air-tickets and making hotel reservations


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Virtual' BankMultimedia technology has been quite effective in bringing the banking services to

the door-step of its customers.

The customer activated terminal (CAT) or Kiosk is an interactive multimedia display

unit, housed in a small enclosure, typically consisting of a computer workstation,

monitor, video disk player and a card reader.

It allows the customers to browse through information and use the available banking

services at their own speed.

Some banks are thinking of establishing 'virtual' branches where a customer can

walk through the door, explore services by touching parts of the screen and at any

time call up a member of the bank staff by video conferencing.

While the banks do not need to invest heavily in real estate for setting up such a

branch, the customer gets the benefit of 'one-stop banking' at a convenient location.


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15 Electronic Funds Transfer at Point of

Sale (EFTPOS)

(EFTPOS) While travellers' cheques meant 'pay-now-buy-later'

and credit cards had 'buy-now-pay-later' advantages, EFTPOS or

debit cards signify 'buy-now-pay-now' but without cashtransaction. The user presents his ATM card when he buys

goods and the EFTPOS system immediately debits his bank

account


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EDI ELECTRONIC DATA INTERCHANGE) typically denotes paperless financial

transactions across the locations.

EDI is fast becoming the norm for inter-company transactions and also for

procurement of boughtout items from the suppliers.

The companies can now operate their bank accounts through corporate banking

terminals in their own offices which are linked to the bank computers.

Companies can thus carry out transactions like transferring funds, managing its

cash flow, opening letters of credit,etc. without any paper work.

Singapore has established trade-net to facilitate electronic submission of trade

documents by traders to various Govt. agencies and the response of these agencies

to the sender.

It has reduced document processing time from one day to 15-30 minutes and the

estimated saving are of the order of $ 1 billion annually.


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Smart Cards The 'Processor' type smart cards with in-

built integrated circuits (ICs) or micro-chips offer a

wide range of transactional opportunities even from

remote areas. The smart cards are extensively being

used for employee 'clocking in', withdrawing cash

from ATM, using pay-phones, payment of various bills,

etc.


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Information Technology & Services

Sector

Key Issues While the technological possibilities of IT may be unlimited, their applications

and adoption in INdia need a conscious approach towards business process reengineering

of existing practices and procedures to take the fullest advantage of IT.

Continuous training and skill upgradation of human resources assume critical importance

towards absorption of new technologies. T

he elimination of manual records, the introduction of electronic fund transfer, ATMs, etc.

raise the important issue of security and integrity of data.

This includes issues relating to confidentiality of information, preventing data corruption

and prevention of fraud. Appropriate technologies for encryption of data for secured

transaction, regular and multiple backups, extensive use of passwords and other forms ofauthorization would need to be adopted.

For paperless and electronic financial transactions in India, a host of legal aspects need to

be looked into


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As in case of EFT, a cheque is not required to be presented physically for making

payment as per the current practice.

Also the legal liabilities of banks and customers in case of loss of ATM cards, ATM

frauds, etc. are not quite understood in the present system.

The adoption of new technologies would warrant a thorough review of the system

towards changed legal stipulations.

Finally, the most important aspect of costs involved and benefits expected need a

closer scrutiny. Expenditure on IT has always not been in tune with the returns

envisaged. The American example of spending US $ 100 billion on IT applications in

financial services during 1970-80 has been a pointer. With 100 per cent more

expenditure on IT per worker, it increased productivity by only 0.7 per cent per year.

Hence, proper implementation programme and technology management aspects

assume much importance


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This article attempts to touch upon the emerging IT applications in a few select services

sectors. The TIFAC study covers in details the IT aspects in diverse sectors like marketing,

logistics and distribution, technical and management consultancy to even in theGovernment administration.

The services sector covers a vast range of occupations involving comparatively little

capital investment leading to gainful employment and has a very good potential for

export revenues.

The sector calls for continued induction and infusion of knowledge-based technologies

with cutting edge applications of information technology. With the highly skilled

manpower and excellent entrepreneurship qualities, India can truly emerge as a 'global

player' in the services sector.


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Future Scenario for IndiaTelevision would forge ahead with its domineering role in mass media

relegating the print media much behind.

With more and more channels getting available coupled with strong

emergence of cable networks for localized programmes, TV would

pave the way for multi-million rupees entertainment, advertisement

and allied business.

While rural sector would account for nearly 50 per cent of TV

ownership, it is predicted that not more than two-thirds of all the

households across the country would own a TV by 2020.

TV (including satellite and cable transmission) would account for 40

per cent of advertisement outlays in 2020 against 22 per cent at thecurrent level.


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Online electronic newspapers may become a reality in India with the advances

in telecom services but such dramatic changes are unlikely for at least another

five years. Steep rise in input costs, declining advertisement support(anticipated to reduce by 20 per cent) and shortage of trained manpower would

pose major threats to the newspaper industry.

Multimedia technology enabling simultaneous exhchange of voice, text and

data would prove to be a major medium of advertisement. Spending on

advertisement is expected to be around 5 per cent by 2000 and to reach 12-15per cent by 2020 AD.

Ultimately the market would see an increase from Rs. 350 million to Rs. 120-150

billion by 2020. Around 50-75 million household are expected to be potential

users of multimedia by 2020.

Role of It in Service Sector

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