India's IT sector bouncing back?

From the Times of India:

Information infrastructure company EMC has just announced that it will invest $1.5 billion in India over the next five years, a level of investment from a single company that the sector has not seen in close to two years.
Manpower supply company TeamLease that saw its open positions drop dramatically from 10,000 a month to 800 post the Wall Street crash, has in the past two months seen those numbers rise to 3,500. Wipro has lifted its freeze on hikes and promotions, at least for some employees.

Partha Iyengar, regional research director in Gartner India, says the number of calls the company gets from customers for directions and consulting has gone up sharply in the last 3-4 months, “indicating that a large number of IT deals will hit the pipeline in the next two quarters”.

During the expansion, India's IT sector was fueled by demand from the US and Europe and it cratered along with those economies. So the current "good news" should be kept in perspective. Prior to the downtown, firms in the subcontinent were forecasting growth rates over 20 percent and are now projecting growth in the 4 to 7 percent range. Better than negative numbers, but a far cry from the heady days of 2007.

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