This research develops principles for an evaluation criterion of the performance of a service firm. The aim of this article is to provide an analysis on the relationship between information technology (IT) adoption and its usage and firm performance (banking and software firm) in India. Firm performance was measured with the help of three important variables: efficiency, effectiveness and profitability. Each one of the above has been described with a set of pretested questionnaires. Banks in India in particular are geared for comprehensive banking solutions with extensive branch networks. The result from statistical analysis was validated with that achieved from artificial neural network (ANN) modelling.