Nasscom forecasts 7-9% revenue growth for IT industry in next financial year
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
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.
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.
The lowering of full year growth guidance, from the earlier estimate of 10-12 percent, mirrors the muted outlook given by Indian IT majors such as Infosys and Wipro after the September quarter results
The size of the Indian IT industry is pegged at US $154 billion, including US $11 billion incremental revenues added in the previous fiscal, according to Nasscom
Nasscom's statements assume significance as the three major IT services companies of the country - Wipro, Infosys and TCS - have come out with a not-so-impressive earnings, giving rise to concerns about the jobs creation potential of the sector