Global recession has begun to hit Bangalore hard, especially in the city’s famous information technology (IT) industry. This has been brought to light by the recent industry monitor survey conducted by the Confederation of Indian Industry (CII) – Southern Region.
The CII’s bi-annual report, published on Tuesday, says Karnataka's IT industry has witnessed a fall of about 5 per cent in manpower utilisation and employment levels dropped by 3 to 5 per cent during the April-September 2008 period.
The report also said that there was also a decline of 2-3 per cent in pricing (billing) during the first half of the current financial year as against the last half of the previous financial year. However, IT industry revenue and overseas billing increased by five per cent.
The report said that the decline in demand due to the economic crisis in the US and also the decline in demand from regions like Europe are the major concerns for the industry.
There’s good news yet. Industry leaders predict that demand for services from the IT sector would go up by 5 per cent during October 2008-March 2009 and revenue would also go up by 3 to 5 per cent. Overseas billing during this period may go up by 3 per cent during the period, according to industry predictions.
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