A large number of US firms have started to pull outsourcing operations from the traditions destinations such as India, probably due to revelation of Satyam's accounting fraud and terror threats in the aftermath of Mumbai terrorist attack on 26/11.

A survey conducted by leading accounting and consulting firm BDO Seidman, LLP, also holds global slowdown as a major cause for decline in outsourcing activities in the country. Barack Obama has urged US companies to reduce outsourcing. Also, the democratic government has scrapped tax subsidies for companies outsourcing jobs.

A partner in BDO Seidman's Technology Practice, Douglas Sirotta, said, "This year we are seeing three global factors that are causing US technology companies to pull back from traditional outsourcing locations, led by the recent boom and bust of the worldwide economy."

The companies participated in the survey ranked India at third place after the US and China for favorite outsourcing destinations. About 22 per cent companies expressed confidence in US despite unfavorable economic conditions while 16 per cent and 13 per cent companies have still faith in Chinese and Indian economies for their future business.

Meanwhile, Australian authorities have given clean chit to drugs manufactured at the Paonta Sahib facility by Indian drug maker Ranbaxy Laboratories. The Australian administration said, "At this time there is no evidence that the quality of any of the products manufactured by Ranbaxy and supplied to the Australian market is affected."