IT growth rate to rebound in three quarters: Nasscom

It attributed the reason to changing externalities

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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.

Chandrasekhar was in the city to attend the Nasscom Executive Council Offsite from November 26-29 here. As many as 40 senior executives of the IT industry attended the meet.

"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.

Nasscom chairman, CP Gurnani said with best of the economies like the US growing only 2.5 per cent, Europe and Britain slowing down, eight to ten per cent rate is still very good.

"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.