But the rupee's strength and a shortage of talent are major concerns for an industry that posted 33 percent growth in exports to 31.4 billion dollars in the year ended March 31, the National Association of Software and Service Companies said in its annual survey.

"The indicators continue to be positive with a potential addressable market of over 300 billion US dollars, driven by growth of existing business and new services opportunities," said Kiran Karnik, president of NASSCOM, as the industry lobby is known.

India remains the destination of choice for global information-technology sourcing because of its talent pool, management capability and security and quality focus, Karnik told a news conference in Bangalore, India's IT capital.

"But there are certain short- to medium-term challenges that need to be addressed swiftly," he added. "These include rupee appreciation, suitability of available talent and infrastructure development."