The company also said Tuesday that third-quarter revenue increased to $45.5 million, up 23 percent from $37.1 million in the third quarter of 2000. The company said that while some smaller clients were scaling back new projects due to the economic environment, its larger clients are still increasing their spending, and there have been no repercussions from Sept. 11. "It is important to note that despite the current geopolitical tension we are seeing no change in the perception of the strategic importance of the offshore model to large blue-chip clients," said Cognizant CEO Kumar Mahadeva in the company's earnings release. Outsourcing remains strong If fears about Sept. 11 and terrorism dissipate, it's likely Indian IT companies will continue to thrive, one study indicates. Statistics from the National Association of Software and Service Companies, an industry association of IT software and service companies in India, shows that outsourcing is growing at a heady pace despite a slowdown.