If the global economy slips into a dreaded double-dip recession, as many believe it would, Indian IT firms could be affected for two-three quarters. However, executives and market watchers say Indian companies are well prepared to handle such a crisis.

The lessons learnt during the economic crises of 2001 and 2009 have made business models of Indian firms flexible to change. Top-tier companies are engaged in ?scenario planning? and mid-tier firms are investing more in account management, on-site presence and customer relationships.

?The industry is well prepared to minimise the impact of a double-dip. We have a good set of business mix. At the same time, we have a good variable cost structure,? V Balakrishnan, CFO, Infosys Technologies ? India?s second-largest IT services exporter ? said. ?If revenues are affected, our current cost structure can be realigned quickly to minimise the impact. We have levers in onsite-offshore mix, utilisation, variable salary structure, and even the business mix itself. We can use some of these to cushion the margins,? he said, adding that a double dip could dent the performance of the IT industry for two-three quarters. He, however, said, ?Offshoring will return to being big play once customers start focusing on efficiency?. In the recession-hit FY10, Infosys managed to grow 4.8% to Rs 22,742 crore.

Fears of the US, which is India?s biggest IT revenue geography and contributes to about 60% of its billings, slipping into a second recession is being viewed as a possibility owing to high unemployment rates and a slowdown in the GDP growth rate.

Though IT companies in India aren?t noticing anything unusual in customer behaviour yet, they are monitoring the situation closely.

?What we have realised is that as an organisation, if you have engaged in scenario planning ? an assessment of what could happen ? and plan for them, you have done the best you could. That has helped us till now,? Manish Dugar, CFO, Wipro Technologies, said. ?The last recession has already given us some experience. If a double dip happens, we cannot guarantee that we will continue our growth rates or expansion in our margins. But we know the responses. We are much better prepared, compared to what our peer groups will be,? he added.

Wipro has diversified its portfolio of accounts, geographies, verticals, and service lines. Dugar also said the firm?s acquisitions and investments in future themes such as cloud and social computing are preparing the organisation for an eventuality.