The effect of recession is here to see in India. Many firms are laying off employees and are doing much less recruitment. Also those with higher salaries are being laid off for those who can be recruited for less.
This is over and above the normal attrition which is due to non performance of employees.
Employees need to be cautious in this poriod and need to re negotiate their salaries and agree for performance bonus and a slight cut in their salaries.
More over those with higher salaries may need to move out to new jobs with lesser perks.
This all a part of cost re structuring of Indian IT firms.
Indian IT firms are dependent on EU and US for their major orders and due to sluggish growth in the west the Indian firms are also affected to that extent.