The challenges that Indian IT companies face in the emerging markets are that local IT services are as cost effective as those which Indian companies provide. Another difficulty faced by Indian companies is that they find it difficult to train local talents due to the differences in their culture and work environment. It has become a trend in the developing countries to avoid outsourcing IT services from other countries. The only factor that does not affect doing business by Indian IT companies in the developing countries is that U.S. is their preferred outsourcing destination.