Nasscom says worst is over but cuts IT export growth outlook
Nasscom gave a bullish outlook on the IT-BPM industry despite the bearish domestic as well as global outlook which could impact the performance of companies in India.
Growth of 8-10% (Constant Currency)
Incremental Revenue addition: $1-10 billion
14% revenues from digital solutions (4x growth since 2014)
11% growth in emerging verticals
2x incremental growth in markets outside US
20% increase in net client addition
India continues to gain market share -- 7% global software and IT services; 56% of global sourcing
The National Association of Software and Services Companies (Nasscom) believes that the worst is behind the IT-BPM sector. However, the industry body has still cut its grow outlook to 8-10% (constant currency) for the current fiscal.
R Chandrashekhar, President, Nasscom, said, “The industry is going through a transient phase with various domestic and global factors impacting its performance. While the effect of various short-term factors may show for a couple more quarters, the worst is behind us. Global projected growth for the industry is high and our share remains strong. We are confident that the sector will continue to re-invent itself by investing in digital technologies and competencies, to drive consistent and sustained growth.”
Nasscom reiterated that industry remains strong in spite of the impact of short-term factors like global, political and economic and business scenarios.
Technology and software is becoming a universal and integral part of modern businesses and society, it said in a release. Traditional firms are also aiming to become software and analytics companies. Global software and IT services globally is set to grow at a healthy pace of 7.2% and 4.4% respectively in 2017.
Driven by strong and stable fundamentals, Nasscom reiterated that the long term opportunity and potential for the industry remains unchanged with a vision to achieve $350 billion by 2025.
It further said that global IT-BPM spends on digital services have increased by two times since 2014. Technology buyers are now expanding outside the CIO organisation, thus creating a unique opportunity for technology providers.
The need of the hour is for Indian firms to invest in the future and enhance their digital capabilities in order to compete globally, it said. This entails a mix of reskilling, domain and platform capabilities coupled with acquisition led competencies.