IT had potential to see a double digit growth

Sounding a note of optimism for the IT industry which has been impacted by the global meltdown, pricing pressure and shrinking in deals, Infosys Technologies CEO, S Gopalakrishan said the IT industry "held the potential" to see a double digit growth when recovery happens".

"We clearly  have to wait and see what kind of recovery it is to achieve it", he told reporters.

"Many people believe that we may not go back to the level of business activity of 2007.That was an unprecedent period of economic activity, it was driven by enormous leverage that was created and was creating significant drift in economy".

"We don't believe that leverage will increase so much so we have to wait and see.If we can go back to normal conditions it is possible that the industy can see a growth of somewhere betwen 10-20 percent", he said.

Customers said recovery would start in mid of calendar year 2010.

"A double digit growth of 10-20 per cent is feasible for the industry when recovery begins".

On the economic environment, he said "we are cautiously optimistic of the environment".

He said IT technology budgets of customers were expected to be flat next year and though companies may have unspent budgets this year it is not likely to be spent but carried forward next year due to the cautious environment.