Outlook For Indian IT Is Cautiously Positive In 2018: Nasscom

by CXOtoday News Desk    Feb 09, 2018

IT

The Indian IT sector has been growing in leap and bounds. 2017 has been particularly not been very sound for the sector.

However, outlook for the Indian Information Technology (IT) sector is ‘cautiously positive’ in 2018 as challenges will prevail even though there will be an improvement in IT spending in global and US economies, industry body Nasscom (National Association of Software and Services Companies) said.

R Chandrashekhar, president of Nasscom, dismissing optimistic speculation that 2018 is likely to be the comeback year for the IT sector, said “That’s the problem, that people proclaim a major revival very quickly.” 

“Neither was a decline predicted nor a sudden massive revival or change this year,” he told PTI.

Pointing out that there always lies time-lag and several happenings occur within the period, Chandrashekar said.

He said that global outlook looks bright as “the global economy, the US economy and all of that…are all looking positive. However, it does not immediately translate into bigger prospects for the industry,” he alerted. 

“It isn’t yet time to say it (challenging times) is all over….now we are seeing everything being great and all that… No,” Chandrashekar emphasized.

The short-span speculation for the global economy is good; US is faring well which generally render greater IT spending even though it cannot be seen immediately. However, what time will it (IT spending) take and to which extent is something which needs to be monitored from close quarters, he said.

‘Old challenges’ remain and neither of them have perished, he revealed. He said that some of them have decreased while some have abated either in immediacy or in their magnitude or impact.

“And then there are new ones like continued small administrative actions in the US which have been there… that don’t individually have a big impact, but collectively they add up to a number of negatives,” he added.

“So, all those things are now a part of business in a global industry which is dealing with de-globalisation and anti-globalisation,” he said.

At the front of the industry working towards more digital influence, and subsequent revenues, he said Nasscom has been continuously emphasising that there are only three things India needs to focus on, “skilling, skilling and skilling”.