India has emerged as an ‘IT Super power’, especially in the field of software and related services export. The paper is an attempt to discern and delineate the growth performance, challenges and opportunities of such a promising sector of Indian economy. It has been observed that software export has registered an annual compound growth rate of 45 per cent during the last decade and continues to show robust growth even today. Growing respect for Indian software industry in the international market, continued rise in the offshore services, quality services, timely delivery, entry into new markets, Y2K data conversion business, international linkages and also due to various steps taken by the Government to promote software export such as simplifying procedures, tax concessions, establishments of software technology parks, more liberal foreign investment policies, possessement of second largest pool of scientific and skilled manpower which is also English speaking, low cost of labour, locational time difference with the western world enabling round the clock development, pro-active role by Nasscom (the software industry association), etc. are some of the factors that gave fillip to the faster growth of India’s software export. Undoubtedly other developing countries can learn lessons from India’s experience and can develop IT capabilities by mutual cooperation.