Indian IT Exports To grow 7-8 pc In 2017-18: Nasscom

by CXOtoday News Desk    Jun 22, 2017

india

The Indian IT sector is at an interesting inflection point and will hire 1.3 lakh to 1.5 lakh people this year, as the industry is focussing on re-skilling, new talent addition, according to Software and services industry body Nasscom that has issued guidances and trends of the IT sector for the current financial year, at a recent event held in Hyderabad. 

The size of the Indian IT industry is pegged at $154 billion. In terms of revenue generation, Nasscom said the industry had added $11 billion revenue in the fiscal year 2017 with 8.6 percent growth in constant currency terms. 

The body also said that it is expecting IT industry’s services exports to grow 7-8 percent in the financial year 2017-18 as compared to 8-10 percemt as was projected earlier. While Nasscom agreed that the sector was experiencing a lot of uncertainties, thanks to Britain’s exit from the EU (Brexit), visa issues among several others, domestic IT services revenue is being expected to grow at 10-11 percent this fiscal, as the industry is well on its way on a transformational journey, with over 8000 firms offering digital solutions. 

“The IT-BPM industry continues to demonstrate a sustained growth index. The industry has reinvented itself and its performance in the last fiscal (FY 2017) showcases how it has focused on building its digital solution offerings through a combination of business model changes and investment in products and platforms,” said Chairman Raman Roy, even though he warned that it is imperative for new and existing talent to reskill to prepare for emerging job roles which required new skillsets.

“Manoeuvring through an uncertain phase over the past year, the industry has maintained its status as a key net hirer in the country and global technology and services hub,” claimed Nasscom President R. Chandrashekhar at the news conference.

Noting that digital solutions and niche segments would be the key growth drivers, he said the revenue projection will be based on improvements in financial services and high potential in digital business.

“The fiscal year will see growth driven by the modernization of operations for client firms and the adoption of new technologies such as SaaS (Software As A Service) applications, cloud platforms, BI (Business Intelligence), cognitive and embedded analytics as enterprise customers scale digital projects,” said the statement.

In terms of research and developments, Nasscom said that the IT industry made R&D investments in products and platform in digital in 2017. It informed that R&D investments have a longer gestation period, and the results will not be visible soon. 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. However, there has been a slow growth in traditional services.

Nasscom also confirmed that the “World Congress on IT” will be held in Hyderabad next year.