Irrational exuberance pulled IT companies down in FY23: NASSCOM chairman

Delayed decision-making, economic uncertainty, and inflation along with demand contraction in some markets are expected to be the major headwinds for the sector

Irrational exuberance due to the unprecedented situation after the pandemic’s outbreak led to disappointment for Indian IT services industry in financial year 2022-23 (FY23), while delayed decision-making from customers was adding to uncertainties, said Krishnan Ramanujam, chairman of Nasscom.

Nasscom, which represents the Indian tech industry, defined 2023 as “priming for a no normal future” in its strategic review. According to the report, the industry may see an incremental increase in net revenue estimated at $19 billion this financial year, against $30 billion in FY22.

“A lot of irrational exuberance happened in FY23 and companies really tanked up thinking that this year