Year 2006 was not a good year for the outsourcing industry but 2007 surely looks a promising year for it. With US economy slowing down the India BPO industry is all set to benefit from it even though it may be for a short period of time. Companies looking to tied over the recession are expected to increase the outsourcing of IT services. It might see a revival of the long term deals in the industry but with US presidential elections lined up for 2008 it outsourcing to India could emerge as a serious political issue. K Sridharan, Chief mentor, Hexaware stated: What really drives US firms is their bottom line and they will only increase outsourcing to cut on cost as employee cost accounts for around 40 per cent of their operating costs. The Indian BPO sector is expected to grow at the rate of 28% this year and generate revenues worth $47.8 billion in 2007. Indian companies are looking forward to further incentives from the government since they have been facing increasing competition from other countries in the Asia Pacific region and since it is an industry which revolves around costs it may emerge as the deciding factor between the leader and the follower. Via rediff