CHENNAI: IT major Tata Consultancy Services is continuously monitoring the current economic slowdown in the developed economies, a top company official said.

"As far as we are concerned, we are continuously watching... there are very many developments taking place in the European countries... We will continue to watch," Tata Consultancy Services ( TCS) Executive Director and Chief Financial Officer S Mahalingam told reporters here.

Stating that his company inks agreement with multinationals and not with "countries", he said, "Many of the companies that we have contract with are multinationals that have operations right across the globe. Taking all that into account, we have not seen any slowdown."

On movement of the rupee against the dollar he said it was caused by volatility capital flows.

"About three months back in July, 2011, the rupee breached Rs 44... if I recollect it should be 43.85 in September, it breached 50 and now we are talking about 52. There is a volatile environment... to me, the volatility is caused by the capital inflow," he said.

Asked whether the company would modify its hiring pattern due to the slowdown, he said hiring was determined by industry growth.

"Hiring pattern is determined by growth. We are essentially recruiting as per the demand we have now. We are not seeing any change in it," he said.

Mahalingam will also head Connect 2011 -- an annual Information, Communication and Technology event organised by the industry body Confederation of Indian Industry (CII). It would be held on December 20 at Chennai Trade Centre.

The 11th edition of Connect 2011 is going to be organised jointly by the Tamil Nadu government and CII. It would witness many senior government and industry leaders participating in the day long event, he said.

This year, the event would focus on the small and medium size companies. Lack of infrastructure for IT companies to enable them grow faster would also be discussed during the event, he said.