Bangalore: India's largest IT software firms are set to beat a slow path out of the worldwide gloom, having seen off the toughest period and posting sizeable profits in the last financial year, analysts said on April 25.

However, the recovery was likely to be drawn-out, as difficult conditions would continue for at least three to six months, they added.

Three of India's top IT firms, Infosys, Wipro and Satyam all recently revealed profits of around 30 to 50 per cent in the financial year ended March.

"These are a lot of positive signs for the industry. We have to now wait and see whether the US economic recovery materialises this year as expected, or whether it slips back again," LKP research analyst Sohini Andani said.

She added there was bound to be a lag between the expected recovery and additional business landed by Indian firms, which may spill over to the end of the current financial year or even next year.

"Certainly, those who are willing to take a long-term perspective will get the big business orders," Andani added.

Industry officials said they expected the billing rates from overseas clients to be under pressure as they would try to derive the maximum advantage out of the global slowdown for as long as possible.

"The market is becoming more competitive. We believe that most of our growth in the next 12 months will be volume driven," said Infosys director, S D Shibulal.

Chairman of Wipro, Aziz Premji, acknowledged the pricing pressures, but said last year's lessons in survival were bound to keep the company in good stand.

"We have emerged stronger, even if it was an uphill climb," he added.