Against the backdrop of rising anti-outsourcing sentiment in the US, the Government today said Indian IT companies should diversify their export markets and reach out to Europe, Africa and Asia in a bigger way.

"We (IT companies) must diversify our export destinations to reach out to Europe, Africa and Asia so that there is the balanced approach in terms of export destinations," Minister of State for Communications & IT Sachin Pilot told PTI.

Ohio state in the US recently banned outsourcing work to foreign companies, hot on the heels of the country's move to hike fee for H-1B and L1 visas. These moves are expected to hurt the USD 50-billion Indian IT market, which garners a major chunk of revenues from American companies.

"It is very unfortunate that this kind of issues are coming up which the people are calling protectionist...," Pilot said while asserting that Indian IT sector is robust enough to over come any challenge.

The outsourcing ban by Ohio has come as a disappointment to India, and Commerce Minister Anand Sharma said on Tuesday that the move is "not welcome at all."

Indian IT industry has made a notable contribution which is acknowledged globally, even in the US. It is Indian entities which are responsible for creating jobs, even now when there are big job losses, Sharma had said.

On whether Indian IT companies would be able to face challenges posed by the US Government steps, Pilot said," We believe that the global movement of the trade of good and services is required for the world to grow together and I am hopeful that no matter what challenges would arise Indian IT sector is robust enough to overcome on them."

Ohio Governor Ted Strickland had banned offshore outsourcing by government departments. Earlier, the US increased professional visa fees significantly to fund a USD 600 million programme to secure its border with Mexico.

Sharma had also cited data suggesting that Indian IT companies have created over 2.5 lakh jobs in the US in the last three years.