Indian outsourcing organisation the National Association of Software and Service Companies (NASSCOM) has warned the market can expect a lower rate of growth this year.

NASSCOM has projected the market's export revenues will rise by just to 7% this year to at most US$50 billion. The projection represents a drop from 16% growth the last financial year to March and the 30% annual rise experienced for much of the decade.

NASSCOM attributes the lower growth to global companies showing reluctance to authorise new spending, even cost cutting spending on offshoring. The outsourcing sector has been particularly hard hit by the recession in the United States, which accounts for 60% of the Indian industry's revenues.