Indian outsourcer Tata Consultancy Services (TCS) saw profits rise two per cent from from 12.5bn rupees (£145m) to 12.9bn rupees (£149m) in first quarter to the end of June.

Outsourcing companies in India have managed to retain growth over the past two quarters in spite of the credit crunch because companies looking to cut costs have begun offshoring more operations.

“Major markets, North America, the UK and Europe grew extensively despite a challenging external scenario,” said TCS executive director N. Chandrasekaran.

“Traction in the manufacturing, life sciences and retail verticals has helped drive growth in the first quarter. Our diversified business mix, portfolio of offerings and blue-chip clients across sectors places us in good position to deliver growth on our large base in the coming quarters.”