There is evident nervousness building in the Indian outsourcing industry with the US elections only a few days away.

The presidential candidates, John McCain and Barack Obama, present relatively different stances on outsourcing.

In the backdrop of the global financial crisis, analysts wonder as to which way the next US administration will swing on outsourcing, since pressures to protect American jobs are very high.

India's IT industry, however, is on a close watch.

Meanwhile, known for their free trade support, the republican camp is pro outsourcing. McCain's stance indicates a will to move clerical jobs to cost efficient countries and therefore to allow US companies to concentrate on core activities. 

Richard R Burt, McCain Campaign Advisor, said, "McCain will support outsourcing just like it was in the Bush administration. It will be good for India if McCain is elected."

The democrats on the other hand are focused on building more American jobs and in a stance similar to 2004-democrat nominee John Kerry's campaign; Obama too is opposed to mass outsourcing. 

Nelson W. Cunningham, Obama Campaign Advisor, said, "Obama is trying to do away with tax provisions for US companies which outsource.”

But more than just the outcome on the Election Day, the Indian companies are concerned about the financial collapse in the US.

As of now, 60 per cent of India's service exports are aimed at the US, while the banking and the financial industry alone accounts for 40 per cent of service exports revenues.

So what is the Indian IT industry's backup plan?

Som Mittal, President of Nasscom, said, “ India needs to diversify to other territories that are under penetrated."

It is therefore evident that its not just the fate of the US electorate that hangs in the balance as Barack Obama and John McCain battle it out for the US presidency on November 4.