No job cuts in IT industry, says Narayana Murthy

The global economic meltdown and the financial crisis looming large over the Indian economy will not result in any downsizing or job cuts in the IT industry,

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says N R Narayana Murthy, founder of Infosys Technologies, one of India's most reputed companies in the sector.

"There are no job cuts. The growth has certainly slowed down but it is not making any significant impact on us," Murthy, who was in the national capital Saturday to announce the finalists for Rhodes scholarships, said.

He also hinted that the net rate of growth of employment in his sector will stay in the green. "Despite reports of companies laying off some staff as a cost cutting measure, they have been advertising for new employees at the same time."

According to him, the key challenges facing the Indian industry in these turbulent times were inflation and the psychological impact of the US crisis, leading some companies to hit the panic button.

He also said that the weakening of the rupee was just an offshoot of the global economic meltdown and was proving to be beneficial for the IT industry.

"The foreign exchange rates are helping us and in some way, they mean higher revenue for my industry," Murthy said, and added that a weaker rupee was making exports of Indian IT industry competitive vis a vis other countries.

Source: EconomicTimes