In this paper, we have used two-step approach in order to analyse the efficiency of firms in the electronics hardware sector for the years 2002-2003 to 2009-2010. In the first step, the data envelopment analysis (DEA) technique has been used to estimate the efficiency of firms in the context of implementing Information Technology Agreement (ITA) of WTO in March, 2005. In the second step, the study has identified the determinants of technical efficiency of firms operating in this sector. The results of a panel data estimation technique show that the implementation of ITA does not have any favourable impact on technical efficiency of firms.