China poses the biggest challenge to India’s IT outsourcing industry, which is expected to grow by an average 15 per cent over the next two years, according to the chief executive of India’s biggest business processing outsourcer.

“China is a huge threat [to Indian IT groups]. Long-term that is the only real threat we [Indians] have,” Pramod Bhasin, chief executive of Genpact, told the Financial Times.

Mr Bhasin admitted that it was “pretty rough out there” for Indian outsourcing companies, but said some would pick up business from clients needing to cut costs and preserve cash. He said the Indian outsourcing sector, which commands about 51 per cent of global share, would slow from recent growth rates of 30 per cent a year, but would continue to expand.