Nasscom confident of 16-18 per cent growth for IT industry in FY12
23 Aug 2011
The National Association of Software and Services Companies (Nasscom) has projected a 16-18 per cent growth for the Indian IT industry in FY12, despite the concerns over the fallout of S&P's downgrading of US credit rating.
"There is no reason for us to be worried... We have spoken to customers and they are looking at expanding into geographies and bringing newer solutions to the market," Nasscom president Som Mittal said
Speaking on the sidelines of the Nasscom BPO Strategy Summit 2011 in New Delhi, Mittal, however, said the industry needed to maintain a cautious outlook.
Fears of a financial crisis gripping major markets like the US and many European nations had given rise to concerns over IT budget cuts by clients, which would affect Indian firms in a major way. The US credit downgrade by S&P, earlier this month led to heightened concerns over the fallout of the global turmoil on the Indian IT industry.
Over 85 per cent of the $70 billion Indian IT sector revenues come from the US and the European region.
In February, Nasscom had projected a moderate 16-18 per cent growth in IT exports in 2011-12 due to slow economic recovery in the US and uncertainty in the European region.
The domestic market is estimated to grow 15-17 per cent, with revenues of about $19-20 billion.
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