Two of the biggest Indian outsourcing providers are feeling the effects of the global credit crisis as their second quarter financial results show slowing growth.

The largest Indian IT firm, Tata Consultancy Services (TCS), has posted second quarter revenue of $1.57bn, a 15 per cent increase since last year.

But profit during the same period was $287m, an increase of only 3.4 per cent since last year, and the smallest profit growth the company has had in over three years, according to Bloomberg reports.

The news follows disappointing second quarter results from the third largest provider, Wipro, which yesterday reported an almost stagnant, one per cent profit growth year on year.

“The global economic environment has deteriorated significantly over the past couple of months, and our outlook is cautious in the near term given the extent on the global economy,” said Wipro chairman, Azim Premji.

“We are confident on the resilience of our business model to tide over these challenging times."

Both companies remain positive they will be able to pull through.

“New opportunities are emerging and there are signs our services will play a significant part in the global economic recovery,” said TCS chief executive S.Ramadori.

N. Chandrasekaran, TCS chief operating officer, said; “Our business model is resilient and we have demonstrated this in quarter two through volume growth, improvement in our offshore leverage, pricing, productivity as well as over 50 new client wins."