TCS (NSE:TCS) CEO N. Chandrasekaran sounded optimistic when he said during an interview that TCS had not seen an impact from the Europe debt crisis among its clients. Particularly since the company’s multi-million dollar UK outsourcing contract with PADA appears to have been in jeopardy for quite some time.

Expectations were high for the end of quarter results of India’s number two outsourcer, Infosys (NASDAQ:INFY). As the first of its peers to release quarterly results, the outsourcing company is responsible for setting the tone for India’s outsourcing sector. It was therefore a big disappointment when Infosys announced a 2.6% drop in profit for the period of April to June 2010.

Contrary to the slowdown projected for IT outsourcing growth, in just a span of a few days, three big outsourcing companies won IT outsourcing contracts all from different regions in the world.

IT outsourcing growth is on the rebound but it is unlikely that it will ever be the same again. After the big boom that the industry experienced a few years ago before the recession, analysts estimate that this is unlikely to happen again.

A number of outsourcing companies have sold or are now selling their subsidiaries after less than stellar performance these past few months. In what had been previously hailed as the need for diversity in outsourcing offerings, some companies are now realizing that they may have bitten off more than they can chew.

Following the UK elections and subsequently, the naming of the country’s new Prime Minister David Cameron and Chancellor George Osborne has pushed government outsourcing contracts in limbo, as companies anticipate the stance the new government will enforce.

The Big Blue is making the state of Indiana and its residents see red. In a series of events that began with the signing of a very profitable outsourcing deal between the state of Indiana and technology outsourcing company IBM, the deal has now ended up with IBM (NYSE:IBM) filing a countersuit against Indiana late last week in an affair that began as, well, somewhat good, to bad and now, to worse.