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.

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.

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.

For the first quarter 2010, expectations and estimates are high, buoyed by the continued recovery of the economy from the recession. And although there have been job cuts and closing of centers in some outsourcing companies such as Convergys (NYSE:CVG) who is laying-off of 677 people in Albuquerque in the US as it closes its center there; the outlook still remains positive.

Last year, the economic downturn caused some organizations to temporarily scale back on I.T. outsourcing efforts while they tackle fundamental issues including keeping the company afloat. This year, I.T. outsourcing is making a comeback… in Asia. As Dell Services (NASDAQ:DELL) Chairman Jim Champy predicts the Asian I.T. outsourcing market will grow much faster in 2010. “IT outsourcing is set to rise in Asia as the region’s companies begin to modernize business processes and technology systems in a build-out that could last decades. We see, as most providers do, the Asian markets growing faster - clearly more than Europe, and certainly faster than the US”, explains Mr. Champy.

If the first few days of a month can be an indication of how well an industry can perform by the months’ end, then this December ’09 should be a great month for the outsourcing industry –bar any mishap of course.  Aside from ushering in the holiday season, several different outsourcing companies have ushered in lucrative agreements since the start of December.