IT sector to recover in two quarters: Narayana Murthy

According to Infosys chief mentor, N R Narayana Murthy, the IT sector is expected to see a recovery from its current downturn in the next two quarters.

He said that there was a sign that the IT sector would recover in the next two quarters and there would be a positive sign for the sector, Murthy told reporters on the sidelines of an industry conference in Mumbai on Friday.

He added that while the US and other western economies posted sluggish growth rates and witnessed spiraling unemployment, the Indian economy grew 6.8 per cent during the financial quarter in June, up from 5.8 per cent in the previous quarter.

Murthy warned that despite the relative health of the Indian economy, the industry in India should be mindful of the fact that the danger of an economic downturn in India had not yet passed and the situation could change rapidly.

The Infosys founder added that the industry must be alert and careful to temper optimisim with realism.

Meanwhile, according to a PTI report Infosys is planning to cut back on subcontracted work and get it done through internal resources from cheaper offshore locations.