IT exports to reach $86 b this fiscal, says Nasscom

 

The domestic information technology (IT) sector will grow by 12-14 per cent, while IT exports are likely to reach $86 billion in the current fiscal on the back of adoption of new technologies and tapping new geographies by corporates, the National Association of Software and Services Companies (Nasscom) said here on Wednesday.

“The (IT sector) growth will be 12-14 per cent in dollar terms and in rupee terms, it will be higher because of currency (fluctuations),” Nasscom President Som Mittal said here.

He was here to attend a two-day IT conclave, organised by the UT Chandigarh Administration in collaboration with the Punjab Government and the Confederation of Indian Industry (CII).

Nasscom was also positive about achieving higher growth this fiscal as IT companies came out with good financial results in last two quarters.

“Last fiscal, the IT sector grew by 10.3 per cent...but the last two quarters results (showed) companies are doing good,” he said. Asked about the likely IT exports, Mr. Mittal said IT exports would reach $86 billion from $76 billion in the last fiscal.

“From $76 billion last year, it is expected $86 billion...it is $10 billion increase...lets not talk about slowdown, the base has increased. Therefore, the growth in percentage will certainly drop as the base has increased,” he said.

The growth in IT exports would be possible because of existing customers moving to new technologies such as social media mobility, health care, utilities and moreover, new geographies, he added.

Asked about hiring in the sector, Mr. Mittal said companies in the IT sector were hiring more people in comparison to other industry verticals.

“We are adding net people... people talk about (that) hiring is going down. We added two lakh people last year, and we are hiring now. Tell me which industry is hiring,” he said.

However, he said the IT sector had changed its hiring model. “We have changed our model. We will hire people in two tranches... we are hiring now from colleges and we will hire next year just in time,” he said.

He said the hiring in current fiscal might be 1.80 lakh.

On emerging markets, Mr. Mittal said the U.S. market would continue to grow, while Asia-Pacific was also growing, adding that though the global economies were still struggling.

There was also good potential in China and Japan while considering their size of economies, he said.

Mr. Mittal noted that small IT companies were picking up in India as large ones were also seeking their help for IT solutions.

“A large number of small companies are picking up which is a big change (in IT landscape). Large companies are going to small companies for solutions,” he said.