IT sector doing well despite slowdown, says Nasscom chief

Despite the recent slowdown, the Indian IT companies have been getting healthier with the number of active clients for leading players going up by seven per cent in 2011-12, according to Nasscom chairman Som Mittal.

Therefore, though we have to be cognizant of the competition from other offshoring destinations, there is no need to be overly worried, he said at the annual IT summit, hosted by Andhra Pradesh government, on Friday.

The revenue per client for top IT companies is also going up by 18 per cent since FY 10, he said. This year, 650,000 engineers have graduated in the country and about 100,000 engineers received job offers in IT companies, according to him.

While the higher top line growth at 30 per cent in the past was adding $8-9 billion to the software business, even the current 11-14 per cent growth would still offer the same upside in revenues, he said.

Forward looking and stable policies, deep domain and contextual expertise, integrating SMEs with services companies are among the potential factors that will make the growth happen, Mittal said.