The Information Technology industry in India is determined to fight off protectionist attitude of the US administration mainly aimed at curbing outsourcing of jobs.

The U. S accounts for nearly 60% of the business for Indian IT firms. The export from the IT industry and back-office services is expected to touch $49.7 billion by the end of the current financial year. The industry is expected to grow 5.5% this year.

India has a 12% share in the outsourcing market in the world with a 51% market share in the offshored services. Industry experts believe the growth in exports for the industry to be between 13% and 15%.

Industry body Nasscom and IT firms are stepping up initiatives and have appointed specialized lobbying firms to remind the lawmakers in US about the benefits of outsourcing.

The president of the Nasscom, Som Mittal while referring to a law against outsourcing said, "The anti-outsourcing and offshoring law, in its present form, pertains to the operations of overseas subsidiaries of US companies and the profits they make overseas."

The US administration believes that the firms utilize the tax laws offering incentives to invest and keep income abroad, for expanding their operations in countries like India. The Indian firms however believe otherwise, they say that the benefits derived from outsourcing are greater than tax disincentives.

Analysts believe that the current system of outsourcing is mature enough to face certain situations like withdrawal of tax rebates. The measures are only going to make the US firms less competitive and will hardly have an adverse affect on the Indian industry.

Companies like Tata Consultancy Services and Cognizant Technology Solutions Corp are getting ready to adjust to the new rules.