Thousands of call centre jobs have been created in India

The National Association of Software and Service Companies (Nasscom) added that the sector should achieve $60bn in export revenue by 2009/2010.

"We are confident and I think we will get there," said Nasscom president Kiran Karnik.

"The overall demand is strong... the headroom for growth is huge."

Challenges ahead

Indian software firms such as Tata Consultancy, Infosys and Wipro offer services like system integration, application development, and supply chain designing and back-office services.

A large pool of English-speaking and well-educated workers have helped to win outsourcing contracts from firms in Europe and the US, and means India remains a favourite outsource destination.

Nasscom says the industry contributes 5.2% to the country's gross domestic production.

But there are challenges to the sector, such as rising wages and the increase in the rupee against the dollar this year.