The Indian IT scenario has been looking very bleak for the past few months. New projects have virtually dried up for many companies with more and more projects getting canceled or delayed. The way to survive the heat of downturn is to join forces with other companies in the same domain. For example, if you have a School Management System, tie up with a company that provides lets say e-learning solutions. You have received inquires non-related to your product and have had to turn them down. So by partnering up, you don't need to lose a lead even if it is not related. Instead all you need to do is refer the lead to a company who does provide the solution and your company can ask for a commission for it. So this way you are making easy money without any hassle. The idea is to survive right?
Look for companies who can pass on any leads to you similarly. How do you do that? Try out B2B trade shows.
Another way to survive is to focus more on profitability from volume of business rather than profitability from individual projects. Lower the usual hourly rate and your profit margin so that you can provide an edge while competing with other companies.