Nasscom Believes IT industry Will Perform Better Next Fiscal

by CXOtoday News Desk    Sep 25, 2017

Nasscom

IT industry body Nasscom is looking at the Indian IT industry to come up with a powerful performance next fiscal due to renewed momentum in technology spends of the financial sector and seek growth from the US clients, according to a report on HBL.

“There are reasons to be optimistic about the year ahead (2018-19). We continue to see that there are green shoots…The demand side prognosis looks positive,” Nasscom President R Chandrasekhar told PTI as quoted by Economic Times.

“There is also a lot of re-strategizing by the Indian companies as well,” Chandrasekhar said.

He informed that there are re-skilling initiatives undertaken by companies to acquaint employees on new digital technologies to drive growth.

“All of this should take full shape in the next few months… All of this would translate into more positive outcome in 2019,” he said.

He also showed confidence in the industry’s potential to be able to meet this year’s growth target.

The Indian IT exports would rise by 7 to 8 percent this fiscal, said Nasscom. It is the same as the last year, while the domestic infotech industry would grow at 10 to 11 percent during the period.

Stricter work visa in significant markets like the US and the UK and an ambiguous business environment have been major concerns for the industry.

Chandrasekhar said the industry should not be perturbed about protectionism as the number of visas issued has not altered. “The cap of 65,000 remains, there is no change in that. The dependence on visas (for Indian companies) has, however, come down. It is the tech and business trends that are far more important (to focus on)…automation for example,” he said.

Nascomm is working with its member companies and the member companies and the central and state governments to also establish centers of excellence (CoE).

“These CoEs are a platform to connect companies in these emerging areas, especially in terms of finding mentors. They are also zones of collaboration where teams can work together,” he said.

CoE Bengaluru was set-up in July last year focusing on IoT and the government has now approved an extension for setting up centers in cities including Ahmedabad, Gurgaon and Vishakapatnam, he said.

“That extension is underway…and we are trying to systematically look at various applications of IoT in different areas, be in manufacturing, healthcare, agriculture, energy amongst others. Each of these centers will focus on certain domains,” he added.