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IT growth rate to rebound in three quarters: Nasscom

It attributed the reason to changing externalities

Dillip Satapathy & Nirmalya Behera  |  Bhubaneswar 

NASSCOM President R Chandrashekhar
Nasscom President R Chandrashekhar

lobby National Association of and Services (Nasscom), after revising its forecast for the information technology (IT) sector downwards to 8-10 per cent for this year, is hopeful that the rate will rebound in next three quarters.

While lowering the rate projections for 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, 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 , said.

Chandrasekhar was in the city to attend the Executive Council Offsite from November 26-29 here. As many as 40 senior executives of the 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 said with best of the economies like the US growing only 2.5 per cent, and slowing down, eight to ten per cent rate is still very good.

"The growth in terms of 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, 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 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.

First Published: Tue, November 29 2016. 19:55 IST