Indian IT exports to grow 12-14% in FY14: Nasscom

Global economic uncertainty caused firms in US and Europe to cut back on IT spending

Exports from India's IT outsourcing sector are expected to grow between 12 and 14% in the fiscal starting April to as much as $87 billion, according to the National Association of Software and Services Companies (Nasscom), the industry lobby.

Exports from the industry, which counts the United States and Europe as its biggest markets, were estimated to have grown 10.2% to $75.8 billion in the current fiscal, Nasscom said on Tuesday.

The global economic uncertainty caused corporations in the United States and Europe to cut back on IT spending, leading Nasscom to bring down its forecast for the current fiscal.

Exports would only grow to touch the lower end of an earlier forecast of 11-14%, Nasscom had said in November.

Strong December-quarter results from second-ranked Infosys and its peers, including top-ranked Tata Consultancy Services, prompted investors to speculate that the coming year will see an increase in IT spending, while overall budgets are expected to remain largely unchanged.