As pundits around the world talk of "green shoots" and a W-shaped recovery, a software engineer with a Bangalore-based IT firm is looking at her own personal economic indicator to find out if the gloom has evaporated.

Young Indian technology professionals and call-centre employees, once pampered as they guided India Inc to the pinnacle of global outsourcing, are keeping their fingers crossed for a better 2010.

"When we see an increase in the number of projects, that means a positive outlook," said an employee in the Bangalore office of software company Ariba Inc. "Managers have been telling us that the scenario is improving."

Until last year, Indian IT firms such as Tata Consultancy Services, Infosys Technologies and Wipro Ltd maintained a flamboyant work culture to lure new talent as well as retain old hands. International assignments, regular team outings, monthly incentives, free movie tickets and even dating allowances were commonly on offer.

Since then, companies have resorted to severe cost cuts to overcome the slowdown, removing much of the glamour from the workplace. Employees at a reputed IT firm in the southern Indian city of Chennai just have to look at the ceilings in their office to feel the heat of the economic downturn -- whirring fans have replaced air conditioners.

But things might be looking up as economies limp towards a possible recovery.

"After the quarterly results, managers have slowly started taking people out for lunches," an employee with Cognizant Technology Solutions Corp said. "There is a slight change in outlook." But most importantly for the workers, the job situation at Indian IT firms seems to have improved, and many feel the downturn has taught them one of life's lessons.

"People are more optimistic about their future right now, but they no more take things for granted. They have become very cautious, spending-wise or otherwise."
If employees are cautious, so are their employers and the flamboyant ways of the past are unlikely to return as spending discipline becomes the new buzzword.