The IT export boom continues for the Indian software industry with software and services exports estimated to have touched Rs 29,500 crore in the first quarter of current fiscal ending June 30, 2006.

This marks a 32.29 per cent growth in the quarter April-June 2006 as compared to the same period in the last year.

Revenue from the export of software and from services sold to companies from outside India (known as offshore outsourcing), had clocked Rs 1,05,000 crore or $17.2 billion during fiscal 2004-2005.

According to projections released by the Electronics and Computer Software Export Promotion Council, at the current pace export of computer software and services -- including ITeS -- is likely to increase to Rs 1,40,000 crore in the current fiscal, 33 per cent higher than the achievement in the previous year.

The growth can be attributed to both high-margin segments of the market as well as traditional service lines in the business process outsourcing sector.

According to Nasscom, revenue from product development and R&D services was $3 billion, up from $2.3 billion the previous year and this is still growing. Indian companies are gaining ground in services such as packaged software implementation, systems integration, network infrastructure management and IT consulting, Nasscom said.

The Indian software and services industry has also been able to maintain its growth momentum and consolidate its partnership with overseas customers, adding to their competitiveness.

"The exports of software and ITeS have increased to 32.29 per cent in the quarter April-June 2006 as compared to the same period in the last year, which is quite in line with the expectations. We expect the pace of growth to accelerate in the subsequent quarters since increasing number of Indian IT companies are now focusing on value-added services like verticals etc," ESC Executive Director D K Sareen says.

According to Sareen, the industry has achieved 21.07 per cent of the yearly target in the first quarter itself and going by the pace of growth, the targets will be achieved comfortably.

According to Nasscom, while the United States and the United Kingdom remain dominant markets for Indian IT exports, Indian companies are making gains in newer geographies as well. They include countries like Germany, Japan, China and Singapore. The number of workers employed in the industry has also now exceeded 1 million.