The National Association of Software and Services Companies (Nasscom) has projected close to 14 per cent growth in the information technology and services sector in the country during the current financial year.
The industry registered $108 billion in revenue during the previous fiscal with exports constituting $76 billion and another $32 billion in the domestic sector. Domestic consumption of the IT and services was fuelled primarily by hardware, $12 billion, and the rest from software and services. “We will probably add $13 billion to $15 billion new business in domestic as well as exports,” Nasscom president Som Mittal said.
He, however, said that job creation during the year was likely to drop by 50,000—from 1.8 lakh last year— to 1.3 lakh jobs as the previous fiscal witnessed large-scale recruitment on account of filling backlog posts. “The backlogs arose on account of shrinking our pipelines,” he told reporters after signing a Memorandum of Understanding with TiE, IIIT-Hyderabad and Hyderabad Angels for Nasscom’s 10,000 start-ups programme.
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Unlike in the past where the sector added so many hours for every dollar, it has now become an intellectual property-led model where “we don’t repeat (the job) which is good for the country”, according to Mr. Mittal.He said the attrition rate during the current year had come down significantly as there was an adjustment in the demand-supply situation. Attrition rate hovering around 13 to 15 per cent was still on the higher side though, he added.