The outlook for several major and small outsourcing contracts is uncertain in the country as the Supreme Court of India decided to cancel all 122 spectrum licenses that were granted to firms during the former communications minister A Raja's time in office.

Both Indian and multinational IT firms like Wipro, Tech Mahindra and IBM as well as business process firms such as Firstsource, Intelenet and Aegis had signed outsourcing contracts with millions of dollars with telecom firms including Uninor, Etisalat DB, Videocon and Idea.

Tech Mahindra had bgged a contract form Etisalat DB India worth $400-500 million while Wipro has an outsourcing contract with Uninor that is expected to grow to $500 million.

Bharti Airtel and multinational IBM had signed an outsourcing deal that grew to massive $2.5 billion in five years. Following the success, IBM also received other contracts from Vodafone and Idea besides another one form Bharti's Africa operations.

Experts say that outsourcing firms had agreed to very risky factors for winning the orders in a very competitive market. The ruling by the Supreme Court of India has put their work and a hope for return in danger.

The Supreme Court of India has scrapped the validity of quashed all 122 spectrum licenses that were granted to firms during the former communications minister A Raja's time in office. The court cancelled all the licenses on the ground they were issued in a "totally arbitrary and unconstitutional" manner. It also imposed a fine on three telecom companies that offloaded their shares after getting the licenses.