In this age of internet, the term e-business has gained huge popularity. Business organizations are increasingly getting involved in e-business. E-business offers a wide range of benefits. E business involves extensive use of informational and communication technology (ICT) .This ICT application at firm level can make communication within the firm faster and make the management of the firm’s resources more competent. Flawless transfer of information through joint electronic files and networked computers increases the proficiency of business processes such as documentation, data processing and other back-office functions.
At inter-firm level, the e-business has huge prospect in reducing transaction costs and increasing the speed, dependability and trustworthiness of transactions. They can also reduce inefficiencies resulting from deficiency in co-ordination between firms. Internet-based business interaction and immediate communication can decrease information asymmetries between buyers and sellers and build closer associations among business partners. Hence, if a firm adopts e-business, it would be able to decrease transaction costs, increase transaction speed and its dependability and trustworthiness, and take out maximum value from their transactions.
E-business can also act as an effective measure for improving communication between a firm and its customer. Corporate Web sites that offer information on products, services or technologies have the potential to improve the quality of a firm’s services to customers and are capable of attracting new customers. Information and communicable technology-based e-business is also efficient in collecting relevant information regarding customers’ requirements, and this information is then used to provide products and services according to the customers’ need. Therefore, these collected information can be used for developing new products/services or innovation. Under e-business system, a well known and increasingly used technique of creating a home page having a straight link to the corporate e-mail account makes the access system easy.
E-business also implies 24 hours contact with customers living in different parts of the world. Therefore, business can be carried out with all its customers at any point of time irrespective of the time zone they live in. Therefore, e-business seems to be an attractive option for any firm for carrying out its business due to the global nature of e-business and having increased customer base resulting from 24 hours contact with customers living in different parts of the world. 
