“There is no impact yet of US sub-prime meltdown on us. Though some of our clients are affected, they have not reduced their work (IT outsourcing) with us. We just have to watch the situation,” he told reporters on the sidelines of launch of Infiniti Retail Limited’s first “Croma” electronics mega store in the south.

Budgeting cycle

“The US is going through a budgeting cycle now. So, the implications of that will be known only in the New Year.

We have no answers as yet. It is not possible for me to predict anything at this point of time,” he explained.

He, however, said “at the same time even in a downturn, if the cost reduction is going to be the primary thing, it is always good for us as we will get more work.” Some of the financial institutions,  were going through implications because of sub-prime crisis, he pointed out. “We need to watch the situation in this respect also.

Even those clients who are in financial services are spread over multiple geographies,” Mr Ramadorai said.

To a query on his statement at the IIM-A summit on  Confluence 2007 that Indian salaries were flattening out now, Mr Ramadorai said, “Yes, attrition rates coming down and it signifies maturity (of the IT industry). The availability of talent pool is also increasing and the demand-supply situation is also getting better.”