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MUMBAI, Feb 11 (Reuters) - India's software and services export revenues are seen rising 28 percent to cross $40 billion in the year to March 2008, an industry body said on Monday.

The total software and services revenues, including domestic market, is seen rising more than 33 percent to reach $64 billion in FY2008, the National Association of Software and Service Companies (Nasscom) said.

"We are well on our way to accomplishing our goals despite some headwinds such as rupee appreciation and wage increases," Nasscom President Som Mittal told reporters.

Earlier, it had estimated software services revenues to rise 24 percent to 27 percent to $49 billion to $50 billion in the year to March 2008.

"The sector is building capacities for future growth. We are also diversifying grographically and in terms of industries," Nasscom Chairman Lakshmi Narayanan said.

By the end of the current fiscal year the direct employment in the sector is expected to reach 2 million, an increase of 375,000 over the previous year, Nasscom said.

Back-office services, which constitute 27 percent of the export revenue, is seen rising more than 30 percent to over $10.9 billion in 2007/08, it added.

(Reporting by Janaki Krishnan; Editing by Prem Udayabhanu)

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