According to CBSIL president and CEO Raj Vattikuti, sanctions may not immediately affect the potential growth of the Indian software industry, but "the perception of India" as a software haven has certainly changed. CBSIL has drawn up a contingency plan to shift the base of operations from Chennai to an alternate area in the Asian region. Phillipines is being considered as the ideal alternative for shifting CBSIL operations from Chennai, in the eventuality of a war breaking out involving India. Vattikuti feels that since the nuclear blasts by India, there has been a "dramatic slowdown" in companies from the US and elsewhere trying to source Indian skills for software programming jobs. The Western perception, according to him, has changed and they areclubbing India along with other countries like Iraq and Iran which went "so quickly to war." They feel that India too may be drawn into war once again. If that happens, it would cause business disruption on a large scale.

"Before the blasts there was so much business which the companies used to do with India. Now they have put this on hold. Customers now want to rethink before committing investments in India," he said in Chennai speaking to The Financial Express.