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New Delhi - India's IT industry is feeling the heat of the global economic slowdown but is optimistic of bouncing back, India's IT bellwether Infosys Technologies said.
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Speaking on the sidelines of the India Economic Summit, which began in New Delhi on Sunday, Infosys co-founder and co-chairman Nandan Nilekani said India's IT firms are bracing for "unprecedented" challenges and is responding to decline in outsourcing orders and fall in earnings by adopting cost optimizing measures and diversifying their clients' portfolio geographically.
Though the US market continues to fetch Indian IT firms about 50-60 percent of their revenues every year, slowdown in the US market has forced the firms to look to Latin America, Africa, Middle East, Europe, Japan and China to diversify their client base.
"Growth in the IT sector will be slower. There is a overall slowdown which is understandable given the crisis. The growth in the IT sector during the current fiscal will not be as good as witnessed for the last four years. In the current environment it is definitely not going to happen," Nilekani said.
Nilekani's warning comes at a time when companies across industries are cutting down on production, rationalizing their workforce, reducing work hours and bench strength, retrenching employees and going slow on hiring process to tide over the ongoing financial crisis.
However, Nilekani said the IT industry is "resilient enough to meet the challenges" and will bounce back.
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