The perception that Indian call centers and back office operations cost U.S. jobs is an old stereotype that ignores today’s reality that two-way trade between the U.S. and India is helping create jobs and raise the standard of living in both countries, U.S. President Barack Obama told a gathering of business executives in Mumbai on Saturday.

Second-tier outsourcers in India can provide specialized services and domain expertise in areas which their larger competitors such as Tata Consultancy Services and Infosys Technologies may find too niche to address, according to a report from Forrester Research.

French IT services company Capgemini plans to add 4,000 more staff in India during the current quarter, seeing an improvement in business, the company said on Friday.

The Cherlapally Central Jail in Andhra Pradesh state in south India is setting up a business process outsourcing (BPO) center, with the aim of giving the prisoners skills that will help them better integrate into society after their release, a senior police officer said on Wednesday.

The IT managed services market in India is growing at a compound annual growth rate (CAGR) of 22.8 per cent, according to IT market research specialist Springboard Research's newly released report 'Indian Managed IT Services Market'."

Tata Consultancy Services (TCS) signaled a stable recovery for Indian outsourcers when it reported on Monday strong revenue and profit growth in dollar terms for the quarter and fiscal year ended March 31.

A preference by companies in Western Europe for contract IT staff is cutting into the business of outsourcing companies in these countries, according to a report by Forrester Research.

India's leading software trade body said on Tuesday that protectionism in key markets could affect the growth prospects of the country's outsourcing industry.