Hyderabad: Hit by global political and economic uncertainties, the Indian IT industry’s software exports are projected to grow at 7-8 per cent only during this fiscal (2017-18) — lower than 8-10 per cent during the 2016-17 fiscal, Nasscom said Thursday.
“The outlook for the IT industry in fiscal 2017-18 is 7-8 per cent growth in exports and 10-11 per cent in the domestic market as against 10-12 per cent in 2016-17,” the National Association of Software and Services Companies (Nasscom) said.
The exports are likely to be worth $124-125 billion — up from $116 billion (in constant currency) during the previous fiscal. The revenues from the domestic market are expected to be $26-26.5 billion against $24 billion in 2016-17.
The lower export outlook comes in the light of political and economic uncertainties that impacted decision-making and discretionary spend during the last fiscal (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 per cent to the revenue.
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 told reporters here that 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 has grabbed the bull by its horns and is well on its journey of transformation to capture new opportunities in digital segment,” said Nasscom President R. Chandrasekhar at the news conference.
Chandrasekhar 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,” he added.
He said the domestic market was the fastest growing tech market in the Asia Pacific region. It grew over 11 per cent in 2016-17.
Meanwhile, Infosys CEO Vishal Sikka has refuted the general impression that the Indian IT industry is overly dependent on H-1B visas for its business mode, amid the Trump administration’s crackdown on firms abusing the visa system to hire foreign workers on a low wage. Infosys shares rose in trade Thursday, and were among the top large cap gainers, rising by over 2.5% to Rs 968.
“It is wrong to say and to think that we are dependent on H-1Bs,” Vishal Sikka said in an interview to PTI, drawing the contrast between the huge number of people employed at the Indian information technology firms and the small number of people that are actually sent to the US on H1B visas. Agencies