Indian outsourcing industry saw tremendous growth but is now facing challenges. Outsourcing deals and contract values fell sharply in 2012, down 30% and 33% respectively from the previous year, highlighting reduced outsourcing by companies and lower government spending. Major Indian IT firms like Infosys and Cognizant announced lower expected growth rates of 3.5-16% for 2013 compared to previous double digit rates, reflecting a slowing demand environment with European and US customers curbing budgets due to economic uncertainty. The Indian IT industry is expected to see lower end growth of 11-14% in 2012-13, as its largest outsourcing clients in the US and Europe cut spending in a difficult business climate.