Foreign demand for India's software and support services shot up by 28% in the nine months to December compared to the same period a year earlier.

The data released by India's National Association of Software and Services Companies (Nasscom) shows exports totalled 340bn rupees (�4.4bn; $6.9bn).

The figures indicate that India is on course to hit the projected $9.6bn full-year sales predicted in July.

Last year's sales totalled $7.8bn.

India's software industry is attractive to Western companies outsourcing work because of its cheap and skilled labour pool.

India in demand

India's second largest software exporter Infosys Technologies' last month reported net profits had risen 24% in the third quarter, driven by international outsourcing contracts.

The US is the largest market, accounting for more than 62% of total software exports, followed by Europe with between 20% and 25%.

Nasscom said outsourcing contracts from Europe are growing.

The industry body predicted demand from Latin America, Africa and Middle East will grow by 40% in the current financial year ending March 2004 to $1.16bn.

Exports are projected to grow to $57bn by 2008.