Nasscom lowers IT export growth to 7-8% in 2017-18
Hit by global political and economic uncertainties, the Indian IT industry’s software exports are projected to grow at 7-8% this fiscal, which is lower than 8-10% in 2016-17, the National Association of Software and Services Companies (Nasscom) said on Thursday.
“The outlook for the IT industry in 2017-18 is 7-8% growth in exports and 10-11% in the domestic market, against 10-12% in 2016-17,” Nasscom said.
The lower export outlook comes in the light of political and economic uncertainties that impacted decision-making and discretionary spend in 2016-17.
The $150-billion Indian IT industry includes revenues from business process management (BPM), software services and software products. Their exports contribute about 80% to the revenue, with the US market accounting for 60% of it.
Noting that digital solutions and niche segments would be the key growth drivers, the industry’s representative body said the revenue projection was based on improvements in financial services and high potential in digital business.
Allaying fears of slowdown and job losses, Nasscom chairman Raman Roy said the industry was expected to add 1.3-1.5 lakh jobs during the fiscal as it continued to be a net hirer with the demand for skilled professionals growing across its segments. The industry association, however, admitted that it was imperative for new and existing talent to reskill to prepare for emerging job roles which required new skillsets.
One of the takeaways from the analysis of the industry performance in the last fiscal was the fast adoption of digital solutions by the Indian enterprise.
For the first time in 25 years, Nasscom could not give the guidance in February due to the uncertainties confronting the industry. It said while uncertainties exist, it now has clarity on the nature and extent of these uncertainties.
Nasscom president R Chandrashekhar pointed out that global outlook for the IT industry is optimistic with analysts projecting strong upsurge in opportunity in 2017 and 2018. “India’s share in this global opportunity is not only holding steady but increasing. The attractiveness of India as the investment destination continues to be on rise.”