Nasscom sees IT export growth slowing to 7-8% in FY18

“We expect export revenues to grow by 7 to 8 per cent, not hugely different from previous year (7.5 per cent), notwithstanding the headwinds we talked about (H1-B visa curbs in U.S., protectionism and Brexit)”. It also expects the industry to see net hiring of 1.3-1.5 lakh during the year.A leading lobby group for India’s IT industry on Thursday forecast the sector’s export revenues to grow at 7-8 percent for the year to March, around the growth levels seen last year, as the industry faces continued headwinds from the US market.The domestic infotech industry is expected to grow at faster pace of 10-11 per cent (in dollar terms) in 2017-18.Keeping in view the political and economic uncertainties in key overseas markets that impacted decision-making and discretionary spend, and also the performance of IT companies previous year, Nasscom expects the future outlook to be positive, he said.”That translates to lower opportunities for IT industry because of lowered investments”, R. Chandrashekhar, president of Nasscom, said.The $150-billion Indian IT industry includes revenues from Business Process Management (BPM), software services and software products.The US and the United Kingdom account for nearly 80 per cent of the country’s IT export revenues.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 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 association, however, admitted that it was imperative for new and existing talent to reskill to prepare for emerging job roles which required new skill sets. Yet, it said that there has been a faster growth in ER&D, testing & analytics, and digital projects, now that companies are sharing more risk and reward with clients and digital have been driving smaller deals too.”The IT industry has been key to American corporations’ innovations and competitiveness and over three-quarters of the top 500 USA companies use Indian IT services”, said Chandrashekhar. As part of its outreach, NASSCOM has curated focused programs to build India as digital and innovation hub, showcasing examples of how capabilities are getting built across the board.NASSCOM also stated some key initiatives that the apex body has been actively building to help accelrate the digital opportunity in the export and domestic market.”Nasscom is working with its partners, members to establish a comprehensive digital platform”.