According to a Nasscom—DSCI (Data Security Council of India) survey, there is a significant opportunity loss for the IT-BPO industry on the account of data transfer related issues as clients hesitate to offshore work to India because of stringent data protection requirements in the EU.

Nasscom and DSCI, along with Department of Commerce (DoC) and Department of Electronics & Information Technology (DeitY), have been working on this trans-border data flow issue between EU and India.

Europe, which accounts for close to 20 per cent of the Indian IT exports, is witnessing a revival in demand for outsourcing services following the debt crisis.

While growth is returning to traditional markets like the UK, newer markets like Germany are also opening up.

Interestingly, Nasscom expects growing demand for outsourcing services from Europe to drive the sector in 2014, even though North America accounts for the lion’s share of the industry’s IT exports.

The Immigration bill in the US, which proposes higher visa fees and enhanced audit by US agencies, is also a challenge that the industry is carefully monitoring.
Read Also:
NSA Ripple Effect: Companies Want Their Data Out Of U.S.
Will IBM's Watson Be The Dark Horse?