Outside of the core, we continue to leverage NCR's strengths in attractive Emerging Industries like Travel, as well as Telecom and Technology. Consistent with this strategy, we completed the previously announced sale of our Entertainment business to Redbox in the second quarter, consistent with the pricing and terms we announced at the time of the deal.
One of our main goals is now to grow overall revenue contribution from higher margin software and services as we continue to transform into a solutions company. In the second quarter, software and SaaS revenues were up 47% compared to Q2 of last year, and our software gross margins were in excess of 65%. Our target for software revenues this year is $500-plus million, and we are well on our way to achieving that objective.
We demonstrated growth in our services business as well, with revenues growing 7% and gross margin expanding 270 basis points over the prior year period. Earlier this month, we announced that we reached our highest-ranking to date in the 2012 Global Outsourcing 100 rankings, rising 2 spots to #6 overall. The rankings are established by the International Association of Outsourcing Professionals, the global standard setting organization and advocate for the outsourcing profession. The Global Outsourcing 100 is an annual ranking representation of the standard of excellence in outsourcing and NCR's services team clearly stands as one of the top outsourcing services providers. Customer references -- company recognitions, certifications and executive leadership. As one of the world's leading providers of software support and managed services, NCR performs 11 million service actions per year and maintains more than 2 million points of service worldwide. As we look ahead, NCR remains well-positioned to benefit from expected growth in expanding our front office technology across our verticals.
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