TeluguOnline(TOL)-News-Jun30,2009:Battling a paucity of new contracts in its core western market, the country's information technology industry is turning its gaze inwards.

While there is a slump in demand from cash-strapped global customers for new technology services, the home market is increasingly looking good for Indian IT players, with contract sizes matching the ones available overseas.

The habitual growth monster is eyeing government's Rs 40,000-crore technology spend to cope with the downturn. Also, post-elections, with a stable government at the centre, conditions seem ripe for e-governance projects to take off at both the central and state levels.

The government departments plan to spend big monies in their so-called `mission mode projects’, as the centre and state governments embrace e-governance and look to digitise everything -- from land records to tax filing. In fact, companies such as TCS, HCL and Wipro have won significant government business in recent months.