A severe effect on the U.S. economy post hurricanes Katrina and Rita is likely to hit hard India’s burgeoning offshore BPO business market, a senior analyst with technology research firm Forrester has said. “These (hurricanes) can result in another recession for the U.S. economy which will also affect India’s offshore BPO business,” says Forrester Research Inc Vice-President (Asia Pacific) John C McCarthy. Pointing out that the effect could be severe; he said it could even surpass the business loss to India in 2003 when the U.S. economy went for cost-cutting while in the grip of a recession.

Hurricane Katrina has had a severe impact on Gulf of Mexico, U.S. and is likely to affect oil production for several months to come. Now with Hurricane Rita hitting Houston, the potential impact on energy markets may far exceed the impact of all previous hurricanes. Energy prices in the U.S. have been on the upswing, and crude oil is trading at around $68 a barrel while gas is at $4 a gallon. “The U.S. companies would opt for major cost cutting and the first target could be the offshore business, where India has a major share,” McCarthy said.

Meanwhile the Indian BPO industry, under the aegis of the National Association of Software and Services Companies has written to the U.S. Department of Homeland Security offering over 1,000 call center seats to assist rescue and relief operations in the aftermath of Hurricane Katrina.

The deadly Hurricane Katrina that hit Gulf Coast of U.S. on August 29 affected three States - Louisiana, Mississippi and Alabama killing hundreds and leaving many more homeless. The worst affected area was New Orleans (in Louisiana State) where the official death toll has risen to 118.