India has emerged as the fastest growing and the fourth largest IT market in Asia Pacific. The total revenues in the software and services sector rose 28.2 per cent to $15.9 billion in 2003-04, compared with $12.4 billion in 2002-03.

The industry (exports and domestic combined) is expected to touch Rs 247,000 crore ($53.2 billion) by 2008 compared to Rs 87,000 crore ($18.7 billion) in 2003, thus growing at a CAGR of 23.1 per cent.

The growth trend in the domestic IT market, according to analysts, peaked in 2005 at 21 per cent with all three components -- hardware, software and services -- growing at a decent pace.

IDC expects exports to grow at 25.3 per cent and the domestic market 18.5 per cent. The higher growth in exports is contributed primarily by the BPO or ITES sector, which is expected to grow at a high CAGR (2003-08) of 36 per cent during 2003-08.

ITeS recorded a healthy growth of 25 per cent to $8.9 billion in 2003-04, against $7.1 billion in 2002-03. The ITES-BPO sector saw a growth of 46 per cent adding approximately 70,000 jobs.