Indian IT hub, Bangalore is also facing the heat of the global recession. The IT industry of state of Karnataka has suffered 5 percent decline in manpower utilization.

Employment opportunities have also decreased by 3 to 5 percent during the April-September 2008 period. It has been established in a report based on the survey conducted by the Confederation of Indian Industry (CII) for the Southern Region.

IT sector witnessed low demand following global financial crisis. A decline of 2-3 percent in pricing (billing) during the first half of the current financial was also noticed. Overall decrease in the demand from European countries is also a cause of concern for the Indian IT industry.

The report predicts that demand of IT services may increase by 5 percent during October 2008-March 2009, leading to revenue increase of 3 to 5 percent.