Amidst growing concern of protectionism, industry body National Association of Software and Services Companies (NASSCOM) has projected that India's Information and Technology (IT) industry is expected to grow at the slowest pace in nearly a decade, as clients defer spending in the face of geopolitical uncertainties. Software export growth in financial year 2017-18 is projected at 7-8% in constant currency terms, down from 8.6% in the fiscal 2016-17, in line with its forecast of 8-10%. In terms of the domestic market the body has said that there will be 10-11% growth from $24 bn in FY17 to $26-26.5 bn in FY18.
Noting that digital solutions and niche segments would be the key growth drivers, the industry’s representative body said the revenue projection was based on improvements in financial services and high potential in digital business. It also said that the fiscal year will see growth driven by the modernisation of operations for client firms and the adoption of new technologies such as SaaS (Software As A Service) applications, cloud platforms, BI (Business Intelligence), cognitive and embedded analytics as enterprise customers scale digital projects.
Though, allaying fears of slowdown and job losses, NASSCOM Chairman Raman Roy said that the industry was expected to add 1.3-1.5 lakh jobs during the fiscal as it continued to be a net hirer with the demand for skilled professionals growing across its segments. In a diversion from over dependence on US market, the industry body said that they are planning outreach activities in Japan, middle East, Africa and China with focus on digital solutions. The industry association, however, admitted that it was imperative for new and existing talent to reskill to prepare for emerging job roles which required new skillsets.
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