on specialised verticals.
On the policy front, a major initiative was the renaming of Department of Information Technology (DIT) as the Department of Electronics and IT (DEITy) to reflect the increasing focus of the government on the electronics sector.
The government also approved the National IT Policy as well as the National Electronics Policy, which aim to make at least one individual in every household e-literate and make the country a manufacturing hub for electronic goods.
The Policy will also promote innovation and R&D and development of applications and solutions in areas like localisation, location-based services, mobile-value added
services, cloud computing, social media and utility models.
2012 also saw elections in the US, which contributes about 60 per cent of the IT exports revenues and Barack Obama assuming the President's office in a second term.
Though Obama has a hard stand on outsourcing, industry experts said his re-election would not have a negative impact.
The year also saw some major acquisitions in the sector. In August, TCS acquired Pune-based Computational Research Laboratories (CRL) for Rs 188 crore in an all-cash deal, while Infosys acquired Swiss SAP implementation firm Lodestone for 330 million Swiss Francs (about Rs 1,932 crore) in September.
"This year, companies have been slow on acquisitions. But in 2013, we hope to see a pick-up and typical size could be between USD 25-50 million on an average as they focus on acquiring either high-end capabilities or customers," IDC's Mehta said.
Some action was also seen in the BPO space. While Infosys' BPO arm McCamish Systems bought US-based Marsh BPO to expand its presence in the group life insurance space, Sutherland Global Services bought out Apollo Health Street in a Rs 1,000 crore deal.
Genpact, which acquired Triumph Engineering and Atyati Technologies during the year, saw Bain Capital buying 30 per cent in the company for USD one billion.
The year also brought relief to Infosys and Tech Mahindra, which were embroiled in legal battles.
Infosys won the case against former employee Jack Palmer, who had alleged that the firm had asked him to sign documents which said workers were heading to the US to