Info-tech

Nasscom pegs growth rate for 2018-19 at 7-9%

KV Kurmanath Hyderabad | Updated on February 20, 2018 Published on February 20, 2018

R. Chandrashekhar, Nasscom President (file pic)

Industry to add one lakh jobs

Notwithstanding global headwinds and uncertainties, the National Association of Software and Solutions Companies (Nasscom) has projected a growth rate of 7-9 per cent for the IT and BPO industry in 2018-19 in the  country as  against 7.8 per cent in 2017-18.

The exports would be at $137 billion dollars in 2018-19 as against $126 billion dollars in 2017-18. The industry is expecting to add one lakh jobs in 2018-19. The overall IT-BPO industry size would be adding $14-16 billion.

Addressing a press conference here on Tuesday, Nasscom President R Chandrasekhar said 2017-18 saw a growth of 7.8 per cent.  "Despite multiple headwinds, industry continues to grow," he said.

It had projected a growth forecast for 2017-18 at 7-8 per cent.  The size of the IT-BPM industry in the financial year 2017 was put at $154 billion, which includes $125 billion in exports.

Chandrasekhar expects big growth in digital business, which contributed 20 per cent this year to the overall revenues in the current financial year. He cited global projections by Gartner and Forrester that hints at increased digital spending by companies. It could grow too $310 billion by 2020 from the present $180 billion,

The Nasscom held a review meeting at the Nasscom India Leadership Forum (NILF-2018) here on Tuesday to finalise the growth numbers for the next financial year.

Hyderabad is hosting the three-day NILF and World Congress of IT from February 19 to 21. ""We see global headwinds remain the same in 2018-19 as well," Chandrashekhar said.

The domestic industry is expected to grow by 10-12 per cent, with contribution from this sector growing to $28-29 billion in 2018-19 from $26 billion in the current financial year. 

Growing at 20 per cent year on year, the association had pared the growth rate from 8-10 per cent in the previous year owing to global headwinds and restriction on movement of human resources.

The Nasscom usually announces its annual growth forecast on the sidelines of its flagship event NILF. It, however, deferred its announcement last year, owing to global challenges and uncertainties in the business.  It held a review meeting in June 2017 and came out with the numbers.  Though e-commerce industry contributed $38.5 billion this year, this sector is facing infrastructure issues, which is hindering its growth beyond Tier-I and Tier-II cities.

Published on February 20, 2018
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