Revenue growth for Indian IT industry to further slacken: Nasscom


In a first, the industry body had deferred giving the growth forecast in February and had instead postponed the same to April-June quarter.

Nasscom said on Thursday that the last fiscal year added Dollars 11 billion in revenue to Indian IT industry, and that the domestic market is expected to grow faster than export revenues.

The Indian IT sector is at an interesting inflection point and will hire 1.3 lakh to 1.5 lakh people this year, as the industry is focussing on re-skilling, new talent addition, according to Software and services industry body Nasscom that has issued guidances and trends of the IT sector for the current financial year, at a recent event held in Hyderabad.

Notwithstanding headwinds, Indian IT export is projected to grow by 7-8 per cent - the same rate as a year ago - while the domestic infotech industry is expected to expand at 10-11 per cent in 2017-18, Nasscom said in its guidance on Thursday.

In terms of revenue generation, Nasscom said the industry had added $11 billion revenue in the fiscal year 2017 with 8.6 percent growth in constant currency terms.

Last November, Nasscom had lowered its annual forecast from 10-12 per cent, due to an adverse impact from Brexit in the United Kingdom, the USA elections and stressed financial services spending.

It expects an increase in exports at $124-125 billion in FY18 as against $116 billion in the same period last fiscal.

The industry, which is also growing its share of domestic contracts, has been battered by clients cutting back on discretionary IT spending and countries like the USA and United Kingdom tightening immigration rules.

"We have shared our views and perspectives ahead of this high-level visit that both countries have enormously benefited from India's IT industry and it is important to keep the channels open for growth of this bilateral economic partnership so that the sector continues to contribute to its full potential", Chandrashekhar added. The industry body stated that it was however imperative for new and existing talent to reskill themselves to prepare for emerging job roles which required new skillsets. "I think the industry has grabbed the bull by the horns and is well on its way on the transformational journey to capture the new opportunities in the digital revolution globally", he said, adding that over 50% of the employees of the top firms are already trained in areas related to digital such as cloud, mobility and analytics.

Commenting on the report, Nasscom president R Chandrashekhar said the industry, manoeuvring through an uncertain phase this past year, had still maintained its status as a key hirer and global technology and services hub. NASSCOM highlighted the vision of the 1 trillion digital economy in India by 2022 and the need for enabling policies and key projects to fast track this over the next five years. "While it may not change overnight, but we hope to reach out to newer markets and reduce the dependency on the United States market,"' Chandrashekhar said.

The industry body is also looking at newer markets moving beyond heavy dependence on the USA and United Kingdom, which together account for 80 per cent of the exports.