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ABSTRACT Occupational stress has become a prominent topic of behavioural science research Recent reviews confirm positive relationships between occupational stress, physical and psychiatric and behavioural symptomatology Hence, an attempt is made to study occupational stress experienced by the public sector and the private sector software employees The sample for the present study consisted of 500 (142 female and 358 male) software employees working in IT companies in the twin cities of Hyderabad and Secunderabad. The instrument used to collect the data was the Occupational Stress Index developed A K Srivasthava and A P Singh (1981) In addition, a demographic questionnaire developed by the researcher was used. Statistical techniques by using SPSS were employed in view of the objectives of the study Results indicated that there is a significant difference in the experience of occupational stress. Public sector software employees were found to be high on many of the occupational stress factors and physical health problems. The study also found that there was a positive relationship between physical health and life style habits among the employees. In view of the findings strategies at individual level, organizational level and occupational stress prevention strategies were recommended.