It is doom and gloom, the world over with markets experiencing an unprecedented slowdown and, indeed, recession. The situation in Bangalore, also called the Silicon Valley of India, is no different.

S 'Kris' Gopalakrishnan, chief executive officer and managing director, Infosys Technologies, says that this is a challenging time for the economies across the globe. Next year there will be many macroeconomic challenges to face, but the year will certainly be better for the industry as it is still growing, he adds.

So what does the Infosys [Get Quote] CEO have to say about the markets for businesses next year? Read on. . .

"This is a challenging time for economies across the globe. The global contraction in capital has affected the financial sector and that effect has percolated into various other sectors as well.

"There have been various reports by analysts across the globe on the downturn and its longevity. Organisations across the globe -- small, medium and large -- are being required to re-evaluate priorities and establish fiscally responsible measures that will ensure sustainability over the next 12-18 months.

"We in India, too, are not insulated or immune to the challenges facing our clients and the industry, in general. This is a time to adopt suitable measures to ensure we manage this downturn, remain competitive and emerge stronger.

"The main focus for the next few months has to be on recovery and the first step towards this recovery from the current slowdown is to ensure stability. Once stability is achieved, companies should start planning, spending and investing in new initiatives.

"Even in the current challenging environment, there are various opportunities: we have to recognise these opportunities and use them to grow. It is important to remember not to deviate from long-term principles and policies.

"This is not the time to be aggressive on growth at the expense of one's margins. Our margins at Infosys are because of a certain model and structure that we follow. This model is designed to be independent of the environment in which we operate.

"Looking at the forthcoming year, while there will be macroeconomic challenges, industry in India is better off because we are still growing. If we manage the next 12-18 months, we should emerge stronger. "