Nasscom forecasts 7-9% revenue growth for IT industry in next financial year

Hyderabad: For the second year in a row, software industry lobby Nasscom on Tuesday projected a flat growth revenue scenario for the industry in FY19, clipping at 7-9 percent over FY18. “We estimate a 7-9 percent growth in IT and IT-enabled services for FY19. The domestic revenue may grow at slightly higher pitch of 10-12 percent, while exports, the mainstay may lag in FY19,” R Chandrashekhar, Nasscom president told reporters here at its annual India Leadership Forum. [caption id=“attachment_4359467” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] He said the industry may close the current fiscal year with a lower-than-projected 7.8 percent growth, and may touch $167 billion in revenue size during the year in terms of exports and 10 percent in domestic revenue. According to Chandrashekhar, the industry may hire 100,000 new hands in FY19, which again 50 percent lower than what it had projected for this year. Last June, Nasscom had forecast a flat growth rate for FY18, after delaying the same by over four months. Normally the industry used to give out its annual forecast in February, which was delayed due to the Visa issues in the US and other global headwinds. Nasscom had forecast a export revenue growth of 7-8 percent in FY18, compared to 7.6 percent in FY17. In FY16, exports earnings rose just 7.6 percent, while domestic revenue was around 10-11 percent. Even on the hiring front, the outlook is dim with a 50 percent likely slip from 130,000-150,000 new jobs projected for FY18. However, Chandrashekhar sounded optimistic saying the mood is upbeat and the trend is positive, which should translate into better business opportunities.