With lot of uncertainties facing the sector, IT industry body Nasscom reiterated its growth forecasts for the current fiscal but refrained from giving a guidance for the next fiscal.
This is perhaps the first time in the history of the body that it has failed to give a guidance. “Amidst continuous technology disruptions, political upheavals, and slowdown in IT-BPM global spending, the Indian IT-BPM industry is projected to grow at a rate of 8.6% (in constant currency) to reach over $155 billion in FY2017,” Nasscom President R Chandrashekhar said.
“Nasscom will give the guidance for FY2018 in the next quarter after deeper interactions with all stakeholders including global customers and industry providers to get a more clearer and reliable perspective on the projections for FY18,” Chandrashekhar added.
Nasscom had revised its growth guidance for the current fiscal to 8-10% in December 2016 from 10-12% projected earlier. The current growth forecasts are at the lower end of the forecasts given in December.
The industry body, however, was confident about the growth prospects going forward, though it did not put a number to it. “The discretionary spendings have not yet been firmed up by many customers. However, we are confident that those are likely to rebound which will be good for the industry,” Nasscom Chairman C P Gurnani said.
The expected upturn in the US economy in 2017 and with global IT spend expected to grow by 5% and 5.3% in 2017 and 2018, respectively against 2.8% in 2016, the outlook definitely sees to be better, he added.
DH News Service
