Information Technology (IT) is considered as an industry mainly driven by intellectual capital. The emerging business models in the IT industry stand testimony for its innovativeness. Software as a distinct business model has been the core segment of this industry. The emergence of this industry as a global industry is evident from its significant contribution to the global Gross Domestic Product (GDP). The role of this industry is so pervasive that a new concept, "IT led economic growth" has become popular. For a greater part of history, the role of India in the global economy was confined to that of being a supplier of raw materials to the developed West. But from the last decade of the second millennium, India has become synonymous with the IT industry. The meteoritic rise of the Indian IT industry has caught the attention of the developed countries of the West, to the extent of influencing their economic policies. The remarkable growth and development of this industry has also created a strong belief amongst many that, the driver of the knowledge economy of India is its IT industry in all certainty. Literature available on knowledge economy and intellectual capital shows that intellectual capital is the preeminent resource of knowledge economy. Further, intellectual capitala new genre of intangible asset, occupies the assets portfolio of the knowledge intensive industries, like the IT Industry. However the fame of the Indian IT industry was marred by the collapse of Satyam Computers in 2008. Since then there is an instinctive skepticism over the wealth created by the IT industry. This cynicism has compelled us to evaluate the key drivers of performance of the Indian IT industry. In the present study we have evaluated the role of intellectual capital in the performance of the Indian IT industry, with an objective to enlighten the general public at large and investors in specific, on the relevance of intellectual capital in the Indian IT industry.

Information Technology (IT) is an industry which is mainly driven by Intellectual Capital (IC). The emergence of business models in the IT industry is a testimony to its innovativeness. Software as a distinct business model has been the core segment of this industry. The true impact of software on the economy goes beyond product and services sales. The biggest industrial impact of software is from the use of embedded chips to achieve product functionality in everything from cellular telephones to automobiles. A great deal of resources are invested by the companies to develop the most effective and comprehensive solution to the given problem, in the form of software. This investment of resources, in an organized manner is termed as `Research and Development' (R&D). R&D is defined as, "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications" (OECD, 2003). Software research in a corporate context is usually applied research, encompassing the design and prototyping of new products or systems, as well as their initial conception. The software R&D process differs from other technology R&D as there is no tooling or manufacturing phase of product development; rather, when R&D is finished, the program is ready for copying, shipping and use. Therefore, it is evident that the core resource of IT Industry is its IC, manifested in its R&D.

There is no generally accepted definition for IC. The terms: IC, knowledge capital, intellectual assets or intangible assets are used interchangeably as they all represent a nonphysical claim to future benefits. Economists call them as knowledge capital, management experts refer to them as IC and accountants call them as intangible assets or intellectual assets. Intangible assets is a generic term used to describe the invisible capital of a firm that generates its value. Intangible assets in its evolving forms is commonly referred to as IC or knowledge capital or intellectual assets. If IC is considered as an input then, intellectual assets is referred to as output, in an intangible form. Intellectual assets when legally protected becomes intellectual property. However, many have offered views that provide a general concept.

Knowledge Management Journal, Intellectual Capital, Indian Information Technology Industry, Business Models, Gross Domestic Product, Global Economy, Economic Policies, Knowledge Economy, Intellectual Assets, Intangible Assets, Foreign Direct Investment, Global Markets, Global IT Corporations, Pharmaceutical Companies, Financial Statements.