IT Sector Shows Slow Domestic Market Growth
The Indian IT sector has made great strides globally, but growth in the domestic market has been slow alarmingly, according to Nasscom – a sign that is worrisome and needs a rethinking.
Nasscom President R Chandrashekhar told PTI that the IT industry in India has been growing at 12-14%. “The domestic revenues, which are some indicator of how things are in terms of adoption in the country, are rather bleak. Last year, domestic revenues have been flat,” he said adding that though the growth of the domestic IT sector was 10%in rupee terms, it was flat in dollar terms.
In other words, the rise is because of the dollar depreciation, which is a “worrisome” trend, resulting in the IT sector to outdo in the international markets but seeing a low adoption rate in its own country.
The Indian IT-BPM industry clocked export revenues of $86 billion in FY2014 with a year-on-year growth of 13%, and the domestic market witnessed y-o-y growth of 10%, taking revenues to Rs 1.15 lakh Crore, which seems to be a concern, for in 2015, Nasscom estimates exports to grow 13-15%, while domestic market is forecast to increase by 12%.
In a recent Economic Times report, Chandrasekhar mentions that there was slowdown in the adoption in public sector because of the decision making being on hold.
“While some payments got delayed leading to companies having a little hesitancy in participating, the private sector faced the same issues. However, with the new government coming in, it will take another six months for things to start moving,” he said in the report.
Chandrasekhar said Nasscom will make some suggestions when the new government comes in. Hopefully, some correctives will happen, suggesting that the next year could be better, he said.
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