"The current global downturn is an opportunity for India's IT industry to look inwards," Nath told a conference of the National Association of Software and Services Companies (NASSCOM) in Mumbai.
Stating that India's software sector was in a stage of 'metamorphosis', Nath said, "there is a huge reservoir (of business) to be tapped across rural India."
Hit by global economic crisis, India's outsourcing sector cut its export growth rate but said that it would still be one of the world's fastest-growing industries.
"Factoring in the impact of the global economic crisis in the second half of 2008-09, the industry is expected to grow by 16-17 per cent by March 2009 to 47 billion dollars," NASSCOM said.
The association had originally projected export growth for this year of 21-24 per cent to 50 billion dollars.
US and other foreign firms, drawn by India's vast, educated English-speaking work force and labour costs that are much lower than in the West, have made a beeline for the country, farming out everything from answering bank client calls to processing insurance claims and equity analysis.
But the recession in the United States, which accounts for 60 per cent of industry revenues, and other parts of the world has crimped customer spending.
OneIndia News (With inputs from Agencies)