Admitting that the global economic environmentwas still "uncertain", IT body NASSCOM today said the fundamentals of the domestic IT industry are strong but there was a need to "wait" and "watch" its performance in the next two quarters.

"Market is really uncertain but I think the fundamentals of our industry are also very strong.... It is true that economic environment is uncertain and we will watch the next two quarters", NASSCOM President Som Mittal told reporters.

Speaking on the sidelines of a one day seminar "Surge 2012" organised by NASSCOM, he said the Indian rupee depreciation against the US dollar helps the industry only in the long term perspective and businesses do not gain much during short term.

"Well, Rupee depreciation helps us in the long term. Because it ensures competitivesness for the industry.But in the short run, we do not really gain because as an industry we do not want currency movement to be in the centre of loss or profit. Because most people want to get what they have projected in terms of pricing", he said.

"We need a stable currency, rather than guessing how far dollar and rupee will be. We hope the government will bring more stability", he said.

Industry Trends

Asked about IT companies entering new geographies, Mittal whose term as NASSCOME chief was extended for two more years yesterday, said "people are now picking up new geographies. Natural growth is happening in Europe, Latin America and Middle East".

"For short term opportunities.....we will be going to newer geographies like Latin America and Middle East and Asia. But in the longer term, we will be focusi#mce_temp_url#ng on places were the need is higher", he said.