The competition will continue to be fierce, domestically and abroad. But, despite all the talk of the rise of India and China on global economic stage, Hurd said, it would be a mistake for companies to rely on outsourcing as a way to grow and compete.

"Strategically, I do not believe that is a long-term competitive advantage, even for a U.S. IT company," he said. "I believe in the end if you want to innovate and change the way people compute, you need to change the labor mix by automating those processes with technology. Companies that merely exist for competitive advantage based on labor arbitrage I don't believe will be around 10 years from now.

"But," he said, "I believe that both markets are important to us. They have different competencies and different capabilities. They are markets we want to play in from a consumption perspective and also partner with from an innovation perspective as well."

Utah's tech industry is gaining strength, growing faster than the national norm, said Jack Sunderlage, UITA chairman. "For years, we have admired Silicon Valley and thought of it as 'semiconductors and software,' " Sunderlage said. "The reality is that Silicon Valley is in the business of building businesses. We've begun to see the same culture develop here in Utah."

According to the U.S. Bureau of Labor Statistics, while the number of IT companies decreased by 1 percent nationwide in 2004, during that same period they increased in Utah 9 percent. And, during the last 11 years, Sunderlage said, UITA has seen its membership grow from a 850 to more than 3,100 companies.

"It's an exciting time for the IT industry in this state," Sunderlage said. "The entrepreneurial spirit and the innovative leadership is very much alive and well in Utah."

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E-mail: jnii@desnews.com