Advisory firm TPI said that India's outsourcing industry should shift focus from US companies to EU companies. If their outsourcing industry does not do this, India would lose business opportunities to Eastern Europe and Southeast Asia.

In 2003, the US accounted for 47 percent of total outsourcing business, while the EU only had 41 percent. However, in 2004, the EU accounted for 49 percent of total outsourcing business, while the US only had 44 percent.

At present, Europe accounts for around 30 percent of the global IT services market services. Additionally, Western Europe's IT spending is expected to grow at 11 percent.

Within Europe, UK is the largest IT market at $39 billion. While Germany, France and Italy could offer India's outsourcing industry over $2 to $3 billion by 2008.

In relation to this, SPG Media is organizing 'The European Outsourcing Forum 2005.' The three-day networking event will be held in Dubai from June 16 to 19. About 45 European companies from different sectors, and around 20 Indian ITeS and BPO companies will participate in the forum.

"It is the right time for mid-sized Indian outsourcing companies to shift focus from a declining US market to the EU market," said Vijay Chintamaneni, director of Indian operations at SPG Media.