The industry clocked over Rs 1.98 lakh crore revenue last year, a jump of 31 per cent over the preceding year. While domestic IT/ITeS revenue stood at Rs 68,411 crore, exports was Rs 1.30 lakh crore in 2006.

The industry is projected to grow at 18 per cent compounded annual growth rate for the next five years to cross an estimated $100 billion (over Rs 4.58 lakh crore) revenue in 2011, International Date Corporation said.

By 2011, exports of IT/ITeS is likely to yield a revenue of Rs 2.89 lakh crore while domestic revenue would be 1.68 lakh crore.

This will be a significant milestone for the industry and will surely mean a lot in terms of contribution to the country's GDP, employment generation and a whole host of gains, which ICT usage brings alongwith it, said Kapil Dev Singh, country manager, IDC (India) Ltd.

On the domestic front, IT/ITeS spend has been estimated at Rs 68,411 crore (Rs 684.11 billion) in 2006, a gain of 26 per cent over 2005.

The growth in domestic IT/ITes spend has been primarily driven by companies' investment in IT infrastructure and increased consumer spendings on mobile and digital products, IDC said.

Domestic IT and ITeS revenues are projected to touch Rs 1.68 lakh crore in 2011, a CAGR of 19.7 per cent. This means that domestic IT/ITeS revenues will grow faster than export revenues from the sector in the next five years.

IDC observed the domestic IT/ITeS market has attained a significant size now but continuing with the same growth momentum for the next five years is not going to be an easy task.

It would require the industry to create new user segments, identify new uses of information, communication and technology and help develop the ecosystem required for it by designing innovative products and services, Singh said.

The domestic market has moved into a new phase where just affordability is not a concern and availability of the right products and services and applicability of IT has gained more prominence, IDC stated adding a healthy orchestration of these three would help the market grow.