E-health is a process of delivering healthcare and health resources by electronic means. It helps healthcare providers and patients to interact with each other with the help of electronic media. It is one of the fastest growing sectors in overall healthcare market. Currently, telemedicine market represents a small percentage of e-health market. Telemedicine is defined as use of telecommunication and information technology to deliver clinical solutions to the patients. It includes use of various applications and services such as smart phones, emails, two-way videos and wireless tools to deliver efficient results. Use of telemedicine helps in improving individual health with the help of electronic media. It also increases accessibility by reducing distance barriers between medical service providers and patients. Various services, such as primary care and specialist referral service, patients monitoring, medical education and healthcare information, are provided with the help of telemedicine. Telemedicine comprises of medical records, medical advices, medical imaging and health informatics. It helps healthcare professionals to diagnose, cure and evaluate patients in remote locations, with the help of telecommunication technology. Telemedicine is dependent on health Information technology for its various applications such as administrative billing, electronic health records and store and forward image transfer software.