Smaller UK firms are missing an opportunity by overlooking the domestic Indian technology market, according to the IT sector's trade association.

India is largely regarded as an outsourcing market, even though the country’s domestic IT market is the fastest growing in the Asia-Pacific region.

To highlight the missed opportunity, trade group Intellect and the South East Media Network are today launching a partnership with Indian IT trade association Nasscom for greater business links between the two small and medium enterprise (SME) markets.

The partnership kicks of with an invitation to UK IT SMEs to enter a competition to select six chief executives for a paid trade visit to India in January 2008.

The trip is designed to create partnerships with India IT companies and exploit opportunities in the Indian and UK markets, particularly new media, healthcare and financial services.

India's market for domestic IT products is expanding at around the same rate eight or nine per cent rate as the overall economy, said Intellect deputy director general Tom Wills-Sanford.

‘The partnership will give small UK IT businesses access to a market which is a growing opportunity,’ said Wills-Sandford.

‘When you think of India and IT you immediately think of outsourcing but typically the IT portion is growing even faster than the overall economy,’ he said.