At a time when IT experts and associations have been shouting from rooftops that the slowdown in the US economy may have limited impact on the Indian IT and ITeS scenario, software major Wipro has gone ahead and admitted that it was indeed feeling the pinch from IT spending cuts in the West.

The company, which recently declared a 25 per cent revenue growth in its first quarter, has warned of some uncertainty in the sales outlook due to the meltdown in the economies of western nations. Satyam Computers too expressed similar sentiments after declaring its Q-1 results.

The United States continues to be the largest single market for Indian IT off-shorers though NASSCOM has recently gone on record to state that most companies would manage to offset losses from the US through their expansion into newer markets in Europe and Asia.

Wipro also frecast that its IT Services revenue for the second quarter is expected to rise only by a meagre two per cent over the prevous quarter, thus making analysts wonder whether the impact of the US meltdown is actually being under played by the markets.