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Nasscom growth estimates for the IT sector in FY 13 can be achieved, say industry watchers. The Nasscom forecast on IT growth for the year has divided the industry.
Some industry representatives have come out openly saying that the 11-14 per cent target is not achievable.
Infosys, the top-2 IT firm in the country, has lent voice to this opinion and said Nasscom is overambitious in its target. A day later, Mahindra Satyam asserted that the 11-14 per cent outlook is doable.
“For the 2011-12, we have achieved a growth rate of 24 per cent. Had I indicated this last year, you wouldn't have believed it,” said Mr C.P. Gurnani, Chief Executive Officer of Mahindra Satyam.
Nasscom's estimates do not depend on one company's performance.
It roped in McKinsey and has taken views from several companies to arrive at that figure. They must have also factored in the demand, Mr Gurnani said. Mr L. Suresh, former President of ITsAP (IT-ITES industry association of Andhra Pradesh), said the target was not impossible to achieve. He, however, said that there might be a problem in achieving it in dollar terms.
“It is possible in rupee terms,” he said.
Mr B.V.R. Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, said: “I don't see any key trigger for softness in demand for BFSI sector and asserted that 11-14 per cent growth could be achievable.”
Mr V. Balakrishnan, Chief Financial Officer of Infosys, said in Mumbai on the sidelines of an event that the industry growth of 11-15 per cent looks ambitious now given the gloomy domestic as well as global macroeconomic scenarios. Some industry watchers agree with Mr Balakrishnan's views.
Dr Ganesh Natarajan, Zensar, backed Nasscom estimates. “It would be ambitious if the country was as independent on the banking sector and on application support as it was 10 years ago. This is a mature and diversified industry and will grow 15 % in 2012-13.
Mr Harish H.V., Partner, Grant Thornton, said: “Given the macroeconomic conditions, it looks tough. However, if the situation in Europe improves, this target is reachable.” Other companies like iGate also have concerns around Nasscom's growth rates.
(With input from Ronendra Singh in Delhi)
> venkatesh.ganesh@thehindu.co.in
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