Wednesday, June 3, 2009

Worst is over; economic recovery likely by year end: Infosys

Software major Infosys today said the economy will recover by the end of the year or early next year going by clients' feedback suggesting that the worst is behind them.

"When we talk to clients, they say that it looked like the worst for them is behind and they might have hit the bottom," Infosys Technologies Limited CEO and MD Kris Gopalakrishnan told reporters here today on the sidelines of a function here.

After hitting the bottom, "Recovery probably will happen by the end of the year or early next year," he said.

However, he cautioned that the effects of recovery would not be immediately felt by the IT industry.

" (The) IT industry was lagging behind. We saw the downturn hit us slightly later. Recovery will also see a slight lag. Companies will begin spending only when they are comfortable that recovery has taken place," he said.

The recovery for the IT sector could lag by a quarter behind than overall recovery, he opined.

However, he cautioned that "there is still uncertainty" and the question of certain events impacting could not be ruled out.

Citing the example of General Motors plunging into bankruptcy, he said its possible implications on the automotive sector, manufacturing sector, impact on overall economy should be kept in mind, considering such events could impact recovery.

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