Is IT industry is in its down fall?

An industry as part of the Industrial revolutionary process can never be in it's downfall. The question could be whether the IT contribution in the industries will reduce or not.

Just like auto and construction industries have become evergreen industries, IT is also a similar one. It will undergo more slow growth than as it did post Y2K till now.

What is more important is whether the quality of manpower in IT will hit a downfall.. to this the answer is Yes it has already and will do so more because lower quality is available at lower rates and that is what the IT industry will absorb more unless they have enough moolah to spend on training and development.

As far as I think every country are more considered about their economical conditions. As india is most populated and highly talented country, people from other countries outsourced their work to India with profit in their mind and as our economy started improving compared all countries they started controlling their economical conditions. As of sudden IT industry will never be in its downfall, I feel IT industry is some what like sinusoidal wave.

No it is not.  The IT people only created like this.  As per my view no business will not come down until unless the business is closed. 

The companies profits are lowered down because of slow transaction of money in the market and this does not imply that "Is IT industry is in its down fall?"

Now a days companies usually come up with figures saying " our profits hit by 65% or 25% or 40%.. what does this mean.. They targeted for assuming $100 profit but could not achieve it. But still they are making profits of 35% or 75% or 60% after all the expenses.

Money flow is slow which impacts the delay in new projects. And companies now more focusing on the cost measure and do not want to spend unnecessary if they do not require it.

I will call this as Saturation point of IT companies.

The indutry overall growth has slowed down and we can c a lot of cost cutting excersise form the companies coz no one forcasted this slowdown and IT co's sitting on massive profits never felt the heat....

IT industry is not on a downward trend. Infact IT people are not investing and they are playing o game of wait and watch for thier next step. Maximum IT comanies are giving thier regular apprisals. This clearly shows that they are not on down side.

it is true

IT industries are not at down fall but most of the companies are performing cost reduction exercises for example cutting down resources like employees which are non performing as well as safe gaurding the profitss due to recent financial crisis.