New York: Revenues of IT companies have been growing at a healthy rate but U.S. based firms witnessed higher revenue growth than their Indian counterparts.

While revenue of Indian IT companies grew 38 percent in 2007, US-based service vendors posted 55.4 percent revenue growth, according to a report by Gartner, an IT research and advisory firm based in Connecticut.

IT services revenue worldwide amounted to $748 billion in 2007 (Rs.31.94 trillion), a good 10.5 percent increase from 2006.

In India, the domestic IT services market grew 18 percent in the same year (in rupee terms), outperforming overall Asia-Pacific growth rate in the sector, the Gartner report stated.

"While cost remains a key consideration in the outsourcing services market in India, operational efficiency and business agility is driving most IT services engagements," said Arup Roy, senior research analyst at Gartner.

The report added that vendors headquartered in India are ranked lower than the top 20 but performed well as a group in 2007, with a growth rate of 38 percent. This is more than three times the market average.