Economic meltdown, which is a situation in which economic activities and its associated parameters shrink to unexpected level, has recently become the most widely studied theme. Different approaches have been adopted by various experts and researchers in proffering solutions to the challenges of economic meltdown. In this work, a knowledge management approach which comprises a range of practices used in an organization to identify, create, represent, distribute and enable adoption of insights and experiences is considered. This approach involves studying the challenges of information technology and its limitations from current economic perspectives. The findings showed that KM is the solution to the present economic meltdown as it affects IT Industries.