IT industry feeling slowdown heat but optimistic: Infosys

"I am sure the companies are following the right strategies. They are waiting for the things to subside and take advantage of next cycle of growth," he said.

Agrees Infosys CEO Kris Gopalakrishnan. "The IT services industry will emerge stronger as after the crisis because the global delivery model that the industry follows, and also, the IT services industry has reached a certain scale, maturity, strength and world class practices," he said.

According to the National Association of Software and Service Companies or Nasscom, the consortium that serves as the apex body of the Indian IT software and BPO industry, India's IT-BPO industry enjoyed about 30 percent growth in previous years but this year it is projected to be at 21-24 percent due to the ongoing financial crisis.

India's software and services exports stood at nearly $40.4 billion during financial year 2008, up from $31.4 billion in the previous year, with the US as its largest market. The revenue of overall IT-BPO industry, including the domestic market, recorded 28 percent growth to touch $52 billion in financial year 2008.

Nasscom said the financial crisis that has hit global markets and the economic downturn in the US are "temporary" and the IT-BPO sector in India would remain untouched by the meltdown.

However, the IT-BPO lobby group has cut its hiring forecast for the current fiscal year, saying IT services companies and BPOs are expected to hire about 200,000 people by next March, instead of the 276,000 that it originally projected. The revised figure represents a significant decrease from the 250,000 new hires recorded for the previous fiscal year.