ALSO READIndia software revenue to touch $5.8 billion in 2017: Gartner Troubled times: Nasscom revises IT growth forecast downwards to 8-10% Global software security market grew 3.7% to $22.1 bn in 2015: Gartner Brexit to create uncertainty in near term: Nasscom IT industry to clock $350 bn revenue before 2025: Nasscom
Software industry lobby National Association of Software and Services Companies (Nasscom), after revising its growth forecast for the information technology (IT) sector downwards to 8-10 per cent for this year, is hopeful that the growth rate will rebound in next three quarters.
While lowering the growth rate projections for software and back offices sector earlier this month, within seven months of the April forecast of 10 to 12 per cent for the current financial year in constant currency, Nasscom had attributed the reason to the changing externalities.
"The external change is a combination of certain factors which have short term and long term impact. The impact of Brexit has started showing in the second or third quarter of the fiscal , although the decision was taken on 23 June. The US election is also having an impact," R Chandrasekhar , president , Nasscom said.
"These are short-term things which we expect will tide over in next two or three quarters. But the longer term factors for change of technology is something will play out over a period of years. We need to be able to adapt ourselves," Chandrasekhar said.
"The growth in terms of IT spending globally for this and next year, as well as the projections made by Gartner, shows a significant uptrend in terms of global spending. The share of India in that market is not going down, it is going up though gradually. India accounts for about 56 per cent of the global off-shore market. Longer term trends certainly look bright and good prospects for the country," Chandrasekhar said.
Nasscom announced its plans to set up an office in Bhubaneswar and to explore further opportunities to partner with the state government. The state government has provided 5,000 sq ft office space to the IT industry body where a centre will be set up for mentoring start-ups.
The state government urged Nasscom to work with it.
"Whenever you think of creating breakthrough models that accelerate human development, please come to us. Make Odisha your home. My government will work with you with affection and empathy. And please be assured that I will remain personally invested in your continued success", Chief minister Naveen Patnaik said.