Indian outsourcers will be hit by US financial crisis

Indian outsourcers will be hit by the continuing crisis in the US financial services sector, according to analysts.

"The key question is whether the crisis has already hit rock-bottom, or is there worse to come," says Sudin Apte, an analyst at Forrester Research. Forrester estimates that IT budgets in the banking, insurance and financial services sector will be cut by at least 15-20%.

The National Association of Software and Service Companies (Nasscom) in Delhi has also said that the crisis in the US financial services sector will have an impact in the short term on Indian outsourcers, as new projects may get delayed. The trade body will not, however, decide until December whether to revise its target of US$60 billion (NZ$87 billion) in IT and business process outsourcing (BPO) exports by 2010.