The Indian IT trade body, National Association of Software and Services Companies (NASSCOM) has said that prospect for the Indian information technology (IT) sector is ‘cautiously optimistic’ in the calendar year (CY) 2018 as challenges continue amidst prospects of greater IT spending with global and US economies improving. It also dismissed any speculation about 2018 being the revival year for the sector, explaining that major revivals take time.
Nasscom President R Chandrashekhar has agreed that no doubt the global outlook was looking up as the global economy, the US economy and all of that are all looking positive. Adding further, he pointed out that the short-term prognosis for the global economy is good; US economy is doing well, which usually does translate into greater IT spending, even though it may not be visible today. However, he warned that it does not immediately translate into bigger prospects for the domestic IT industry and also said that the industry needs to tread with caution as there is always a phase-lag and that many things can happen in-between.
Chandrashekhar further said that old challenges continue and none of them have disappeared, and some of them may have abated, while some others may have reduced either in immediacy or in their magnitude of impact. He also said that there are new ones like continued small administrative actions in the US which have been there that don't individually have a big impact, but collectively they add up to a number of negatives. So, he noted that all those things are now a part of business in a global industry which is dealing with de-globalisation and anti-globalisation.