Asia's largest software maker Tata Consultancy Services’ (TCS) chief executive officer S. Ramadorai is concerned about the impact of travel advisories on India's future as a software development base. Mr Ramadorai, who has recently been appointed as an IT consultant to the Chinese province of Shandong and named as one of the 25 most influential consultants globally by US based Consulting Magazine, said "it's not just about overseas clients postponing trips to the subcontinent.

Global companies are now beginning to question their decision to farm out work to India." The TCS chief said events like the recent travel advisories give out signals that the country is shut to the outside world. "I worry that global companies may reconsider their decisions to give India additional work and look at other cost effective markets like China and the Philippines," he said.

His statements are based on the logic that global companies have to plan for business continuity And offering offices in different Indian cities is not adequate in a situation when the entire country is cut off. Infosys officials recently said there could be an impact on business if the travel advisories continue after July. According to media reports, the travel warnings could impact Infosys's new client acquisitions in the third and fourth quarters.

Mr Ramadorai said the Indian IT industry should not underestimate China's potential for developing software. "I imagine that in just another five years or so, China will be in a position to compete. Similarly, the Americans have a great affinity for the Philippines," he said. "If we're looking at costs, there are other countries in the world that will manage to deliver. But capability is another issue and India has the advantage of delivering quality at competitive prices. It is this value proposition that we have to market," he said.

Mr Ramadorai said the company would record sales growth as per the industry estimates of 15 to 20 per cent in the current fiscal. "That's a safe statement, especially with events like September 11 and the recent travel warnings," he said.