China’s IT outsourcing sector grew by 40% to reach $60.1 billion in 2011, according to statistics from the country’s Ministry of Industry and Information Technology.

The combined IT services and software sector, including the internal market, rose by 32.4% to reach $292 billion during the year, Chinese news agency Xinhua reports. This was 4.4% faster than the industry’s average annual growth rate during 2006 to 2010.

Software exports increased 18.4% to $30.4 billion while software (development) outsourcing rose by 40.3% to $6 billion.

These figures suggest China is rapidly closing the gap with India’s outsourcing sector. According to Nasscom, India’s IT outsourcing trade body, the sector is expected to grow by 15% this year to reach $100 billion.

Extrapolating these growth rates would suggest that China is poised to overtake India in IT outsourcing revenue next year.