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Slowdown to last 15 months: Nasscom chief

business Updated: Nov 04, 2008 14:36 IST

The economic slowdown resulting from the global financial crisis is expected to last not more than 15 months. However, additional jobs will get created in India during the period, a senior official said.

"This slowdown will last for another 12 to 15 months and yet we will add jobs," chairman of India's apex IT body Nasscom Ganesh Natarajan said.

He said only 200,000 jobs were created this year against the expected 270,000 jobs due to the slowdown.

"What this slowdown in effect means for India is that the domestic companies would be a little more watchful when they recruit. The next six months would be difficult for IT companies," he said.

"IT industry growth would be 22 per cent as compared to last year's 29 per cent. This seven per cent drop is not because there is no demand. It only means that the demand is not being translated into business. India's economic growth could come down to seven per cent yet opportunities will still be there," said Natarajan, who is also the Global CEO of Zensar.

He said serious work is being done through IT solutions and the global companies cannot afford to lose Indian services. "As far as IT or BPOs are concerned there is nothing to worry."

On the global financial crisis which has hit the US extensively, Natarajan said: "The US companies went a bit extreme in outsourcing. However, the US will still maintain its global leadership."

To a question, he said the rupee will stabilise at 42 to 43 a dollar in a year or two though it could reach 56 before that.

Natarajan was here on Monday evening to deliver the convocation address at the 6th Convocation of Nirma University of Science and Technology.