The predominant sentiment in the Indian IT industry continues to be one of optimism, though somewhat guarded, considering  the current economic slowdown.

Speaking on the sidelines of the India Economic Summit, Nandan Nilekani co-founder and chairman, Infosys Technologies, allayed apprehensions of the economic slowdown scorching the industry. Nilekani admitted that the industry faced challenges, but indicated that its resilience would see it through.

The Indian technology sector is expected to face tough challenges, but will continue to grow, though at a slower pace than in the past four-five years. It would also continue to create jobs, according to Nilekani.

Nilekani referred to the similar situation faced by the industry in 2001, and said that the industry had not only weathered the conditions then but also taken advantage of the conditions at that time. "I am sure that companies are following the right strategies to wait for the situation to subside and then take advantage of the next cycle of growth," he opined while reserving comment on specific numbers.

Nilekani also brushed aside fears of a less outsourcing-friendly US policies under President-elect Barrack Obama after he assumes office.

Meanwhile, it is learnt that Nasscom has scaled down its initial 21-24 per cent growth projection for the current financial year in the wake of the financial crisis. It has undertaken a review of the FY09 export targets, which are expected to be released sometime next month.
 
After years of high growth, the IT industry last month projected modest revenue figures for the third quarter ending 31 December 2008. The current fiscal will also be one of modest growth due to a number of reasons such as delay in decision-making and ramp-ups and pressure on discretionary spends.

Other IT leaders too struck a similar note at the summit. According to Kris Gopalakrishnan, CEO, Infosys, the global economic slowdown has lead to a temporary decline in outsourcing orders, affecting India's IT industry. "The IT services industry will emerge stronger after the crisis because of the global delivery model that the industry follows," he said.

"The IT sector has always managed to lay a stronger foundation for a better future from any crisis it faces," B Ramalinga Raju, founder-chairman of Satyam Computer Services, concurs.

The optimism is also reflected in the hiring plans of IT majors. Infosys plans to hire 25,000 employees in the current financial year (FY09) while Tata Consultancy Services has plans to hire 30,000-35,000 people. Wipro and Satyam Computer Services intend hiring 14,000 to 18,000 IT professionals respectively.