The overall reaction of Indian outsourced product development firms to the slowdown in the economy is that of watchful optimism. Almost all of them are looking forward to the proverbial silver lining that every cloud has.

A few years back, Independent Software Vendors (ISVs) began to explore the options of outsourcing non core activities to outsourced product development firms. They realized that this way they could concentrate on product ideas and marketing which are the core activities. What further heightens the drive to outsource product development is the rising wages and reduced product life.

The lull in the economy is a reality however its also a fact that to stay competitive ISVs are now under more pressure to cut down product cost and the time to market apart from the technical aspects of reducing product life cycle, preventing product from reaching a stage of technology obsolescence. Outsourced Product Development can still make all this possible without feeling the pinch of the economic recession.

This explains why as the world frets over the current global economic meltdown and the impending recession, the Indian outsourced product development firms are optimistic. They foresee a surge in demands once the crisis is over. Curious as it may sound, the current turmoil hasn't been able to affect the Outsourced Product Development companies in India.

According to a recent report by Business Line, the outsourced product development (OPD) firms here are gearing up for an anticipated surge in outsourcing once the dust settles down.

Various industry sources confirm that the recession has not affected the sales figures yet. Reportedly a number of new clients have been added to the portfolios of several Outsourced Product Development (OPD) firms during this period. The business from the mid size as well as comparatively large ISVs continues to grow. Only the small ISVs are holding back new projects since the venture capitalists funding them have been more or less affected by the turbulent times.