"This attack is bound to create doubts in people whether it is safe to continue to do business in India, and one of the businesses that may be affected may be outsourcing to India," said Siddharth Pai, a partner at outsourcing consultancy firm, Technology Partners International.

Last week's attacks in Mumbai targeted two high profile hotels and other targets in south Mumbai, the country's financial hub.

In the short term though, Pai and other analysts do not expect multinationals who outsource to India, or have development subsidiaries in India, to close operations.

Microsoft Research India, for example, said last week that it is committed to operating in India.

There is however concern among business executives that despite numerous terrorist attacks in the country, the Indian government does not have the political will to handle the terrorist threat.