According to NASSCOM, India's IT software and services sector are expected to clock revenues of $50 billion this fiscal as against $39.6 billion in 2006-07.

However, the growth rate in the sector is expected to slow down to 24-27% compared to 30.7% achieved in FY07.

The Indian IT-ITeS industry recorded an overall 30.7% growth against the projected 27% in 2006-07. The revenues were up from $30.3 billion in 2005-06.

The software and services exports segment grew by 33% to register revenues of $31.4 billion in 2006-07, up from $23.6 billion in 2005-06. The domestic segment grew by 23% to register revenues of $8.2 billion against $6.7 billion in 2005-06.

"We are confident that the forecast (exports plus domestic market) of $50 billion in 2007-08 will be achieved, as will the target of $60 billion exports by 2009-10," said Kiran Karnik, president, NASSCOM.

“While India continues to be the most preferred destination for global IT sourcing due to its talent pool, top-quality management and security and quality focus, there are certain short to medium term challenges that need to be addressed swiftly,” he said.

PTI