IT sector bullish on exports growth: Nasscom

Signalling that the worst times might be over for India’s export-driven information technology services sector, industry body Nasscom on Tuesday gave a positive picture, pegging the estimated growth in exports for IT and business process outsourcing (BPO) services for FY15 at 13-15 per cent.

The industry is expected to add $15-17 billion of incremental revenue in 2013-14, with improving US and Europe economies, it said. Nasscom also hinted the nature and scope of future demand would be different, with the social media, mobility, analytics and cloud (SMAC) suite of technologies at the forefront of clients’ demand. This is one of the most bullish growth targets given by Nasscom in the past two years. For this financial year, it said growth would be 12-14 per cent; the sector has managed 13 per cent. In FY13, the industry clocked 10.2 per cent growth, less than the body’s prediction of 11-14 per cent.

 

“One should not only look at the growth numbers. There are a number of things taking shape, beneficial for the industry’s long-term future. For example, India is becoming a hub for the digital industry and creating an ecosystem of start-ups which itself will spur new avenues of growth,” said Nasscom president R Chandrashekhar.

 

Although the growth estimates are in line with sectoral expectations, it comes after years of subdued growth, especially after the global economic slowdown that began with the collapse of Lehman Brothers in 2008.  “I think the growth projection is fair and not conservative, since full recovery in various markets still hasn't come,” said Milan Sheth, a partner at audit and consultancy firm Ernst & Young. The market is upbeat but the concerns are whether recovery will be as fast as expected or whether as many contracts will be signed.”

Modi to attend

Gujarat CM Narendra Modi will speak at the Nasscom Leadership Forum through video-conferencing. Congress leader Rahul Gandhi and Delhi CM Arvind Kejriwal declined invitation, said a sector official.