India’s IT and BPO industry generates around $40 billion annually,  though the current financial crisis will slow down their growth targets, they hope to see more opportunities in the long run as the western companies want to cut cost by sending work to India. Indian outsource body Nasscom predicts that there might be slow growth for a period of one year for the Indian IT companies. Already the Indian IT companies are slowing their hiring and expansion plans due to credit crunch in the global market and Nasscom reduced  the outsource market growth target for the next year.

Indian IT companies are already feeling the pinch in their business due to currency fluctuations and competition from other countries like Malaysia, China, Philippians, etc. Analysts believe that they do not see any big contracts signing up by the Indian companies in BFSI (Banking, Financial Services, and Insurance) sector. Once the Wall Street reorganizes their businesses they forecast that Indian IT and BPO companies will get the major share of the outsource contract due to their in depth knowledge  in their businesses and the Indian companies can help in the reorganization and consolidation of business processes to the Wall street companies.