IT industry to grow 12-14% for FY2016
According to Nasscom, the Indian information technology (IT) industry is expected to grow within the predicted range of 12-14% for FY16 in constant currency terms. India’s $146 billion IT industry has been facing the brunt of whipsawing currencies this year as movements between the dollar, the euro, the Australian dollar and Latin American currencies have hurt growth. Digital contributes roughly 10% of the industry’s revenue and is growing much faster than the traditional business. While clients’ budgets increase, largest of increased budgets will go to software. Hardware will continue to face cost pressures and IT services will see moderate growth. Another key vertical for Indian IT – manufacturing - will witness a 5% rise in IT spend. While retail, high-tech, healthcare, media, travel and hospitality will witness relatively sluggish growth, energy and utilities will witness the highest % growth in IT spends at 7.7%.