In an interview with CNBC-TV18, Vineet Nayar, CEO, HCL Technologies discussed the outlook for the Indian information technology (IT) sector. He said there was a dramatic reduction in total IT outsourcing deals signed as per the data monitor. However, he expected an uptick in IT deals from January, 2010.

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Here is a verbatim transcript of the exclusive interview with Vineet Nayar on CNBC-TV18. Also watch the accompanying video.

Vineet Nayar: The statistical data shows that the S&P 500 companies, about seven quarters ago, 80% of them were registering a QoQ growth. Two quarters ago that 80% had come down to 50% and the current quarter they expectation is it would be about 26% which would register positive growth. Two quarters going forward based on the projections given, we would be back to 50-50% and four quarters forward we would be back to 80-20%, if you just look at statistical data. If you turn that into the IT services sector, if you look at the data monitor data again and I’ll look at data and non-data, we started with USD 8 billion worth of outsourcing deals which data monitor reported for IT services in July to September of last year. That USD 8 billion came down to USD 4 billion in JFM (January-February-March) quarter and came down to USD 2 billion in the current quarter, which is (April-May-June) AMJ, so that’s a dramatic reduction in total IT outsourcing deals signed as per the data monitor.

However if I combine the S&P upswing which is happening and I combine the data monitor data that it is a lowest USD 2 billion which is not sustainable because I think something is going to break, I think the outlook will come back, the deals would start coming back. The question is when? So if I believe S&P data then I think the ‘when’ is going to be earlier. If I believe the hands which were raised, I think it is going to be January onwards.
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