Only two years ago, India's high-tech companies basked in glowing media coverage of their technological prowess but with economic growth slowing and lay-offs rising in the US and Europe, Indian technology firms are getting their first taste of negative publicity, a media report said in Washington.

Criticism and calls for action, says The Wall Street Journal, have come from politicians in the US and Europe -- and, in one case, from immigration authorities.

"We are concerned about bad press, not about the New Jersey bill," says Atul Takle, a vice president at Tata Consultancy Services Ltd, India's largest software firm.

However, the paper says, Indian companies are also concerned about the proposed legislation in New Jersey to end outsourcing of government work, whether software or call centres, to people who are not American citizens.

"Although the Bill is on hold, at least three other US states are considering similar measures. While the bill would have a negligible effect on revenue -- since government work represents a small percentage of overall outsourcing -- it is still a worrisome trend," says Kiran Karnik, head, India's National Association of Software and Services Companies.

In March, the Netherlands detained about 15 visiting employees of i-flex and forced them to leave the country for alleged visa irregularities.

In response to such incidents, said the Journal, Nasscom, has hired an American public relations firm to burnish the industry's image and is also offering free advice to Indian companies on visa regulations of various nations.

Indian firms themselves are looking at ways to deal with any backlash, including hiring locals in the US and Europe.