The Indian IT software and services market grew by more than 30 per cent during the past year, exceeding forecasts of 27 per cent growth.

And new figures from Indian IT trade association Nasscom predict further sales increases of 24 to 27 per cent to reach revenues of nearly $50bn (£25bn) in 2008.

Nasscom’s annual survey showed sales of £19.3bn for the financial year 2006/7, up from £15.15bn in 2005/06

TCS maintained its position as the leading offshore supplier followed by Infosys and Wipro.

Software and services exports grew by 33 per cent, reaching revenues of £15.7bn for 2006/07, up from £11.8bn in 2005/06.

Business process outsourcing grew by 33.5 per cent £4.2bn.

Nasscom president Kiran Karnik says that India continues to be the preferred destination for global IT sourcing, but there are short- to medium-term challenges that need to be addressed swiftly.

‘Rupee appreciation, suitability of available talent, infrastructure development and sustenance of a positive policy and regulatory environment require timely, consistent and continued effort from all stakeholders including industry, government, academia and Nasscom,’ said Karnik.