Even as the Indian IT industry finds the recent speech by US President Barack Obama disturbing, industry experts says that the anti-outsourcing move will not have any immediate impact on its revenues.
However, they maintain that it may affect the business of small companies.
"The recent anti-outsourcing (move) is not going to impact the Indian companies as most of their businesses are with private companies. The private companies are still looking at India as their outsourcing partner and are not affected by rhetoric. However, the trend is certainly disturbing," said Ameet Nivsarkar, vice president, global trade, Nasscom.
Similar sentiments were expressed by global networking giant Cisco.
"This is business is not driven by rhetoric but hardcore commonsense. US companies outsource because it is profitable and not just out of some political compulsions. So, large contracts will not be impacted. However, there may be certain disruption for small contracts and companies," a senior official of Cisco said.
And with the mid-term elections to the Senate and House of Representatives coming up, there would be more noise on the anti- outsourcing front, said IT & ITeS industry body Nasscom.
Recently, the state of Ohio banned offshoring of jobs by government departments. This was followed by protests by Indian companies. The ban was followed by the Obama's statement against outsourcing by American companies.
Last month, the US increased the fees for H- 1B and L1 visas, sought by Indian professionals and IT companies. The hike in fees is expected to put an additional burden of $ 250 million annually on the Indian IT firms.
However, there have been some concerns among the Indian IT companies on the US companies shying away from making long- term commitments.
"What is challenging is that companies are willing to commit for the short term but not the long term or the medium term. Because of this, it becomes challenging to do medium-to long-term planning," S. Gopalakrishnan, chief executive officer (CEO) of Infosys Technologies had said in an interview at the World Economic Forum in China.
However, the Cisco official pointed out that companies are being held back from committing to long-term contract not by political sentiments but by economic concerns.
"The global economy has not recovered completely and so the companies are trading with caution before making longterm commitments. The concerns are similar in the European as well as other markets," he added.
At present the $ 50- billion Indian IT industry gets over 60 per cent of its revenue from the US. Europe accounts for about 20 per cent of its revenue while the rest 20 per cent comes from Latin America, Middle East and other destinations.
And with the anti-outsourcing rhetoric getting louder, Indian IT companies have started looking for alternatives in other markets like Europe, Middle East and Latin America.
"It is not that the companies are not looking at the options.
We have already started looking at the options in Europe. The response is slow but good. Once the economy improves we will get many more deals and also from Latin America," said an official from Infosys, who did not wish to be named.
Others like TCS, Mahindra Satyam and Mindtree are also considering European options seriously.
Even Nasscom is pitching for flexible work permits and single visas for European Union countries, which will reduce costs for the Indian IT industry.