Figures from the National Association of Software Services Companies (Nasscom) show that the IT outsourcing sector is expected to slow down sharply this year following a drop in demand due to the global financial crisis.

In a press release, Nasscom said export revenues are expected to grow about 17 per cent, compared to the previously estimated 21 per cent, generating $47 billion in revenues in the year ending March 2009. IT outsourcing makes up about a quarter of India's total exports.

While exports will be down, India's domestic market is expected to grow nearly 20 per cent with revenues exceeding $23 billion.

Nasscom chairman, Ganesh Natarajan was hopeful that the government will stimulate investor confidence and growth by extending fiscal incentives. X

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