Bangalore: Relieved at the end of uncertainty with the re-election of President George Bush, India's software industry is bullish that American firms would be much bolder to assert their gains by outsourcing more IT and BPO work to India.

"It is good news. American firms will be more bold in terms in not hiding that they are benefiting from outsourcing to Indian IT offshore providers," Wipro Technologies president (Enterprise Solutions) Sudip Banerjee said in Bangalore today (Nov 4, 2004).

Bush, a strong proponent of outsourcing, re-entered the White House for another four year-term after Opposition Democratic Presidential Candidate John Kerry conceded defeat yesterday (Nov 3, 2004) in the election that had a nail biting finish.

"Outsourcing....I don't think these are big issues. Important issue is India-US relations is becoming stronger, I have no doubt at all (that it will be further strengthened)," Infosys Chairman N R Narayana Murthy said.

An upset victory by Kerry would have caused uncertainty in the short term for outsourcing as the Democrat candidate made US job losses caused by offshoring an election issue.

"There is going to be continuity of policy. There is more comfort level, so it becomes natural for (US) companies to do more and more work with India," i-flex Solutions Chief Operating Officer N R K Raman said.

India's IT and BPO exports last fiscal was $12.5 billion and is expected to register a 30 per cent to 32 per cent growth to touch $16.3 billion in 2004-05 even as the first half results by top IT exporters have showed higher growth. "For every Dollar saved in outsourcing, US companies are investing $1.2 into new business; new R&D which ultimately benefits American economy. The outsourcing trend is growing strong and I believe it is going to continue," Zensar Technologies CEO Ganesh Natarajan said.

India is witnessing a surge in global IT and BPO firms setting up base here or outsourcing from domestic companies, deriving benefits from the huge low cost talent pool.

"In the next five years...20 quarters, we have a very good optimistic story," NASSCOM Chairman Jaithirth Rao said.

Rao, also the Chairman and Managing Director of IT and BPO services firm Mphasis BFL said, ultimately, the Indian IT industry is based on sound economics. Sound-term political changes, one way or other, I don't think we are too concerned about".

"A large number of IT and BPO deals are being talked about and signed now," iGATE Solutions CEO Phaneesh Murthy said.

"Most of the Fortune 500 companies have already seen the benefits, and more and more companies are spending their Budget on work being done in India," he said.