Indian IT firms need to look at emerging economies and newer verticals like health and transportation to continue its growth momentum, in the wake of slowdown in traditional markets like the US and Europe, a senior Nasscom official today said.

"The Indian IT (sector) has been doing phenomenally well and will continue to attract some attractive bunch of people.

But we can't rest on the laurels.

"Today, we have just 15-20 per cent of the global market and I think we can be a much bigger player," Nasscom Chief Economist and Director-General, Policy Outreach, Anupam Khanna told PTI.

He said emerging areas include verticals like health and transportation.

"There is still a lot of room for growth today. There are uncertainties and pressure, but there is still a lot of hope.

This is also a time when people look at how to do things better, so there are opportunities as well," Khanna said.

He further said that in the long run, the growth dynamic of the world is such that the centre of economic gravity is shifting and emerging markets, especially Asia, are going to be big players. "So, certainly we should be looking at them harder," he added

Asked if the economic slowdown in the West could trigger a knee-jerk reaction from political classes and lead to ban on outsourcing, he said, "I think the world has moved beyond that...offshoring and outsourcing is happening...what happens in crisis is that adjustment becomes a little more painful ...if you see there has been no growth in protectionist measures."

"I am not saying there are not pressures, but I am not sure if people at this stage would be heavily protectionist.

There will be pressures and the industry needs to educate people," he added.

Rising rates of unemployment in the US had sparked a debate on whether outsourcing should be banned to create more jobs in the US.

The fears of resurgence of global economic slowdown has compelled the USD 70 billion Indian IT industry to focus more on the domestic market and expand to newer geographies.

The domestic market is witnessing strong demand from sectors such as banking, telecommunications, insurance, government and utilities.

"Domestic market offers a huge opportunity. The government has huge plans for e-governance, which opens up more opportunities for firms," Khanna said.