Calcutta, July 2: The software and IT services market is expected to reach $50 billion this fiscal, clocking a growth of 24 to 27 per cent over the last financial year.

This was revealed by Nasscom in its annual survey on the performance of the domestic software and services sector (excluding hardware) and outlook for 2007-08.

“The software and services industry exceeds predictions year after year and we are confident that the forecast (exports + domestic market) of $50 billion in 2007-08 will be achieved, as will the target of $60 billion exports by 2009-10. From a market opportunity perspective, the indicators continue to be positive with a potential addressable market of over $300 billion, driven by growth of existing business and new services line opportunities,” said Lakshmi Narayanan, chairman of Nasscom and vice-chairman of Cognizant Technology Solutions.

According to the survey, the domestic IT-ITeS industry recorded a growth of 30.7 per cent against a projected growth of 27 per cent, clocking revenues worth $39.6 billion in 2006-07, up from $30.3 billion in 2005-06.

The industry directly employed more than 1.6 million people and created employment opportunities for 6 million more in related segments.

Software and services exports grew 33 per cent to record revenues of $31.4 billion in 2006-07, up from $23.6 billion in 2005-06.

The domestic segment grew 23 per cent to garner revenues worth $8.2 billion in 2006-07, up from $6.7 billion.

IT services exports have grown 35.5 per cent to clock revenues of $18 billion; while those in ITeS-BPO were up 33.5 per cent, garnering revenues of $8.4 billion.

Engineering services and product exports clocked revenues of $4.9 billion, growing at 23 per cent in 2006-07.

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

These include rupee appreciation, suitability of available talent, infrastructure development and sustenance of a positive policy/regulatory environment. These require timely, consistent and continued effort from all stakeholders, including industry, the government, academia and Nasscom, Narayanan added.

Nasscom also brought out a ranking of software and services companies. Tata Consultancy Services topped the list followed by Infosys Technologies, Wipro Technologies, Satyam Computer Services, HCL Technologies and Tech Mahindra.