Software and services exports, the mainstay of the Indian IT industry, will grow 7-9%, according to a key projection by Nasscom for 2018-19. This comes in the backdrop of continuing turbulence for the industry.
“There is still some turbulence and it is not clear how some of the known uncertainties will play out. However, FY 2019 is likely to be a better year based on our current assessment,” said R. Chandrashekhar, president of the National Association of Software and Services Companies.
Economy up tick
A trajectory not entirely different from the 7.8% export revenue growth estimated in the current fiscal, the industry body’s projection recognises the up tick in the global economy and technology spend, as well as the challenges impacting the overall positive sentiment.
In FY16 and FY-17, the exports were $108 billion and $116 billion. The industry, as per Nasscom guidance, will further expand its digital footprint with a growth of 7-9% for technology services and 10-12% for domestic technology.
The current outlook, Mr. Chandrashekhar added, was one of cautious optimism, given that 2017 started in the backdrop of uncertainties across protectionism, Brexit and slowdown in technology spend decision making.
Mr. Chandrashekhar and Nasscom leaders who briefed the media in Hyderabad, where the World Congress on IT and Nasscom India Leadership Forum are underway, said that the IT industry export revenues would be about $135-137 billion in FY-19 as against $126 billion in current fiscal. Domestic revenues were projected to grow 10-12% to $28-29 billion ($26 billion).
Overall, the industry is expected to add $14-16 billion in revenue next fiscal. Beginning on a muted note, 2017-18 was driven by a better growth in the second half and expected to clock revenues of $167 billion.
Hiring on same lines
On the hiring front, he said the industry would add 1,00,000 new jobs next fiscal, something similar to FY 2018. Technology jobs in non-technology sectors are expected to grow faster. Overall, the economic growth, rapid technology adoption and progressive policies would remain the key to accelerate job creation in the country.
Chairman Raman Roy said that the software and services sector had crossed $ 150 billion, thereby tripling in size in less than a decade.
