MANILA, Philippines -- Though India remains a powerhouse, local companies still see a lucrative market for outsourced software services in the United States.

"We still see a big addressable market in the US," said Philippine Software Industry Association (PSIA) president Beng Coronel.

The PSIA recently ended a roadshow in the US, meeting industry groups and stakeholders in Los Angeles, Chicago, San Francisco and New York/New Jersey.

"We are aiming for late adopters or those who have yet to outsource. There are companies (in the US) who want to outsource but are not yet catered to by Indian companies," Coronel said during the PSIA briefing Wednesday.

Despite the current economic slowdown, Coronel said companies are still looking migrate work offshore.

"While IT budgets are flat, offshoring becomes a more prominent part of their business strategy," she said.

Arup Maity, president and CEO of BlastAsia, which joined the US roadshow, said ?Tier 2? companies in the US are a viable target more today than before.

"Smaller companies are realizing that they need to outsource in order to become more competitive as even companies overseas are becoming global and setting up in the US," Maity said.

PSIA has 130 member software companies, although Coronel estimates the entire local industry is composed of nearly 400 companies, most of which are engaged in providing software-related services for overseas customers.

The group estimates its members generated a total of more than $423 million in revenues last year. Coronel said PSIA's target is to increase this to a billion dollars by 2010.