Nasscom, India 's information technology industry lobby, played down concerns about outsourcing ahead of the US presidential elections when the issue of job losses usually becomes a prominent issue.
In the past four years, India 's IT outsourcing industry "has moved on," said Som Mittal, president of Nasscom. In the US "there is the realisation that outsourcing helps businesses be more efficient", he added.
Mr Mittal's comments came as Nasscom unveiled data from the fiscal year ended March. The industry, which includes software development outsourcing and call centres, saw revenues increase 28 per cent to $52bn.
Exports to the US, UK and Europe comprise the vast majority of the industry's business and expanded 29 per cent to $40bn. Nasscom projects that exports alone will reach $50bn this year.
In the run-up to the 2004 US presidential elections, the issue of outsourcing had become part of the platform of John Kerry, the Democratic nominee, who pledged to keep jobs from going offshore. At the time, Nasscom launched assertive lobbying efforts in the US to deflect criticism about outsourcing.
"In every election there are emotive issues that come up," said Mr Mittal. But he argued that the political fervour around outsourcing this year had so far been "far less than what it was before".
However, Nasscom's efforts in the US were active as it sought to ensure that "we do our part in getting out the right perspective".
Although Nasscom announced another year of high growth, the IT industry felt the chill of the US economic slowdown and the impact of a weak dollar and a strong rupee.
"It was a wake-up last year that we were susceptible to currency," said Mr Mittal. The industry generated 61 per cent of its business from the US and 30 per cent from Europe.
Business from the US used to represent a larger share of revenues but companies have been trying to diversify into the UK, continental Europe and Japan.
A slowdown in business from banks and financial services companies continues, although Nasscom is seeing higher growth from clients in manufacturing and healthcare.
"Never have uncertainties in the world been so high," said Mr Mittal. "Companies want to stretch their dollars. There has been a slowdown in decision-making."
Mr Mittal added that two areas of "great concern" for the industry are employee training and moving operations beyond India 's seven major cities such as Bangalore, Delhi and Mumbai, where costs are rising.
The IT industry hired 375,000 professionals last year. India 's uneven education system cannot keep up with enormous demand so companies such as Infosys, Wipro and Tata Consultancy Services must take on the task themselves.
"It's a huge burden on the industry to train people," said Mr Mittal, who nevertheless said education and training should be permanent initiatives.
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