Terming the Eurozone debt crisis as a "short term" phenomenon, IT industry body Nasscom today said that the European bloc will continue to be one of the largest markets for the Indian IT?BPO industry.

Amid concerns that the crisis in Europe may force companies to cut their spending on IT, Nasscom said that the current European uncertainties are short-term in nature.

At present, US is the largest market for the export- driven Indian IT industry.

"We are confident that the European bloc, as a whole, will continue to be one of the largest markets for the Indian IT?BPO industry," Nasscom president Som Mittal said after releasing a report on opportunities for the Indian IT-BPO industry in Germanic countries.

The report comes at a time when the lingering debt crisis in Europe is rattling global markets, raising fears of project cancellations among Indian IT firms.

The report, prepared in partnership with consulting firm PricewaterhouseCoopers, said that Indian companies currently earn less than USD 2.6 billion from the Germanic region against the addressable market size of over USD 53 billion.

Business from this region, which is the largest market in Europe, has the potential to grow to USD 10 billion by 2020.

Germany and Austria each spend close to 2.5 per cent of the GDP on IT, whereas Switzerland leads the norm by spending over 5 per cent, the report said.

"Germany, Austria and Switzerland have emerged at the economic forefront of Europe. They present significant opportunities for the Indian IT sector," Mittal said.

He said that Germanic countries are facing an acute shortage of talent in knowledge-based sectors such as IT and Engineering.

India is a natural partner, complementing their needs with a large technically-qualified, talent-based workforce with global experience and low-cost credentials, he added.