The growth of India’s IT outsourcing sector, which contributes to about 25 per cent of the country’s total exports, is expected to slow down sharply this year following a drop in demand due to the global financial crisis, India’s software industry lobby predicted.

National Association of Software Services Companies (Nasscom) said export revenues are expected to grow about 17 per cent, compared to the previously estimated 21 per cent, generating $47bn in revenues in the year ending March 2009.