The National Association of Software and Services Companies or Nasscom, the country's premier software body, remains bullish despite the cry against outsourcing.

"The overall mood is one of optimism. We feel that outsourcing is a temporary issue," said Kiran Karnik, the president of Nasscom. He was speaking at a press conference at the end of Nasscom 2004.

Elaborating further, Som Mittal, the chairman of the organisation said, "The fundamentals are very much in favour of outsourcing. The present outcry is driven by the fact that there was an economic downturn which led to loss of jobs. Further, it is an emotional issue. Also, there is a political issue. Things should change now that there is economic recovery. If this issue is taken care of, the emotional and political aspects will take care of themselves," said Mittal.

Karnik also feels that India could emerge as one of the leaders in the safety, security and privacy business. Further, he said that as the global model changes India would play a very significant role.

Meanwhile, Nasscom has inked two agreements for promoting information technology in Taiwan and Malaysia. The trade body has signed a memorandum of understanding with the Institute of Information Industry, Taiwan, to increase trade and co-operation in the IT software and services sector.

The objective of the MoU is also to promote joint marketing of IT software and services to other countries like China, Japan and other Asian markets.

Under the terms of another MoU renewed with MDC, Malaysia's premier corporation responsible for development and management of the country's multimedia super corridor, the two countries will try to enhance trade.

Further, Nasscom will help Malaysia explore opportunities in the ITES-BPO space. The MoU, which was signed in 2000, has been renewed for another 5 years.