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BANGALORE: The global economy and the information technology sector are entering unchartered territory, says IT czar Mr Azim Premji.

“While environment is challenging, the value proposition of the outsourcing in general and offshoring in particular has only strengthened,” Mr Premji, however, said here on Wednesday.

He said the financial year 2008-09 saw the most severe economic meltdown the world has seen in this generation, ummatched both in its geographic spread as well as severity.

The crisis battered the financial sector and moved on to real sector of the economy with a total freeze in credit market, significant downturn in corporate profitability, loss of confidence in business prospects and tapering of consumer spending.

“This resulted in the world economy and trade almost coming to a standstill”, Mr Premji said.

“Coordinated action of central banks and fiscal stimulus by key nations helped bring back some confidence in the last quarter but emerging economic indicators lead one to believe the world economy will take some time to recover from the aftermath of this crisis”, he added. - PTI

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