IT Sector Trends in IndiaThe Indian information technology sector has been instrumental in driving the national economy on the rapid growth curve. According to the Nasscom-Deloitte study, the contribution of the IT/ITES sector to the country's GDP increased to 5.2 percent in 2007 from 1.2 percent in 1998. Besides, the IT and BPO sectors are on the point of increasing their income. worth $64 billion at the end of fiscal 2008, registering a growth of 33 percent, with exports expected to exceed $40 billion and a domestic market estimated at over $23 billion, according to a study. At the same time, the Indian IT services market is estimated to remain the fastest growing in the Asia-Pacific region, with a CAGR of 18.6 percent, according to a study by Springboard Research. India's IT growth in the world is mainly dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, IT Management. applications, infrastructure management services, software testing, service-oriented architecture and web services. A report by the Electronics and Software Export Promotion Council (ESC) estimates software exports. record a growth of 33 percent in the current financial year, with export figures in FY 2008 expected to reach US$ 45 billion. The country's IT exports have actually grown significantly, from a few million dollars in the early 1990s. The government expects export turnover to reach $80 billion by 2011, with annual growth of 30 percent. Outsourcing A Gartner study predicts that India will become the undisputed leader in outsourcing in 2008. The 2007 performance study, undertaken by procurement consultancy Equa Terra, found that the majority of UK companies are outsourcing all or part of their IT functions to India and plan to continue this strategy as India has become the preferred outsourcing destination for UK businesses in terms of satisfaction. Another study conducted by Nasscom jointly with consultancy firm Everest reveals that the Indian outsourcing sector has registered an annual growth of 35 percent over the last five years, with annual revenues reaching $11 billion, the major part coming from exports. India has ousted China as a competitor for offshore services and tops the list of 30 countries on criteria such as language, government support, labor pool, infrastructure, education system, cost, political and economic environment, cultural compatibility, global and legal maturity, and security and privacy of data and intellectual property.