While India's political stability is often touted as one of the reasons for its popularity as an outsourcing destination, that reputation will suffer in the wake of a series of terrorist attacks in Mumbai. The country's financial capital and its largest city, Mumbai was recently named one of the top outsourcing cities in the world by Global Services magazine.

According to BusinessWeek, firefights have occurred at several different locations in Mumbai.  Foreigners are apparently being targeted in attacks in the Colaba area, a wealthy enclave where many multinational corporations have offices. Two five-star hotels, the Taj and the Oberoi, were attacked.

CNN-IBN television is reporting that Western tourists are being held hostage at the Taj hotel. The board of directors for Hindustan Lever was reportedly planning to meet there this evening, and CNN-IBN said the company's CEO was trapped in the hotel. The TV report pictured the lobby of the hotel in flames. BusinessWeek's attempts to reach a company spokesman were unsuccessful.

At least 50 people have been killed in the attacks. As in a series of attacks in New Delhi in September, the terrorists are focusing on locations that symbolize India's growing affluence.