IT industry slowdown notwithstanding, hiring to continue

Speaking on the sidelines of the India Economic Summit, IT bellwether Infosys Technologies co-founder and co-chairman Nandan Nilekani said India's IT companies are bracing for "unprecedented" challenges and is responding to the decline in outsourcing orders and fall in earnings by adopting cost optimizing measures.

However, Nilekani allayed fears that the current financial crisis will drastically impact the IT job market. "Companies will continue to recruit. We are going ahead with the recruitment plan. I think it will continue," he said.

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

Nilekani has also brushed aside fears that US President-elect Barrack Obama would put his foot down on outsourcing when he assumes office. Obama, during his election campaign, gave hints of a protectionist regime, saying he would give tax breaks to "companies that hire in the United States and end tax breaks for companies that ship US jobs overseas."

"It is too early to comment on this. We have to wait and watch for the time being," Nilekani said.