Technology research firm Gartner, on Monday, cut its global IT services growth forecast to 2.5 per cent for calendar year 2015, from 4.1 per cent it had predicted in the previous quarter. However, this will have a minimal impact for the Indian IT industry.
The firm also cut its worldwide IT spending outlook to 2.4 per cent to reach $3.8 trillion in 2015 versus its previous expectation of 3.9 per cent. The worldwide IT spending grew 1.4 per cent to $3.7 trillion in 2014.
Gartner attributed the cut in IT services outlook in 2015 to reduction in software support services, lower growth rates for enterprise software and lowering of short-term growth rates in Russia and Brazil, due to declining economic conditions and political uncertainty in both countries.
The reduction in IT services outlook, coupled with rising U.S dollar and reduction in growth for devices and telecom services were the reasons for cut in Worldwide IT spending forecast, it said.
However, the revised forecast would have a minimal impact for the Indian IT services industry, according to Nasscom President R. Chandrashekhar. The software services industry lobby group has projected a growth rate of 13-15 per cent in 2014-15 for the IT industry.
Currency fluctuation“Currency fluctuation is a cause of concern. However a stronger U.S. dollar and economy mean there would be more investments in technology, which is a key for the Indian IT industry which derives 60 per cent of revenue from the IT Industry,” Mr. Chandrashekhar said.
He also said the decline in enterprise software could be offset by the focus on digital like cloud, mobile and analytics, which now the Indian players are focusing on.
